^ 




H 

272v 

K 





LIBRARY OF CONGRESS. 



Shelf.h(B.>7 2- 

r+Ua 

UNITED STATES OF AMERICA. 



Price 25 cents. 



THE REMEDY ' S f ° r the public to take what the P ublic creates, and 
B Ilk lll.llll.il I leave to individuals all that individuals produce. In 
other words, it is public instead of private appropriation of economic rent, 
which will open the fields of labor, destroy all monopoly, make distribution 
equitable, and SOLVE THE LABOR PROBLEM. 



Man's Mistake 



MARTIN HEMMY 



& 



1895. 

AMERICAN EDUCATIONAL PUBLISHING COMPANY, 
ST. LOUIS. 



A new volume in Herbert Spencer's System of Synthetic Philosophy. 

The Principlesof Ethics. 

BY HERBERT SPENCER. 

This volume consists of three parts, the 
first of which, "Justice," has been previous= 
ly published separately. The parts which 
the author has now completed are entitled 
respectively "Negative Beneficence" and 
"Positive Beneficence." 

In this complete "Principles of Ethics" (Vols. 1 
and 11, $4.00) the reader possesses one of the most able 
and at the same time lucid interpretations of modern 
philosophical thought. A detailed Hst of chapter 
titles of all the volumes of the Synthetic Philosophy 
Series will be sent to any address on request. 

The above sent postpaid on receipt of price. Address 
AMERICAN EDUCATIONAL PUB. CO., Third and riarket Sts., St. Louis. 



SHERDIAN WEBSTER'S VOICE. 

A WEEKLY JOURNAL OF ECONOMIC REFORM. $1 a year. 

It believes that all Reformers should "Get together" 
in one party to secure Direct Legislation first, as then 
each element could obtain its special reform without 
antagonizing others. 

It believes the People's Party should make Direct 
Legislation its chief issue, so that all reformers may 
unite in it heartily. 

It believes that reformers in other parties should 
express their approval of this plan, and their willing- 
ness to support the People's Party on this basis. 
SHERIDAN WEBSTER, Editor and Prop. 
515 Pine St., St. Louis, Mo. 

What Shall I Read? 

That depends. If you want sensational balder- 
dash and "fake," political news, read the paid organs 
of plutocracy, the Demo-republican papers. 

If you want genuine patriotic literature and fear- 
less denunciation of the crimes of plutocracy, read 
the PEOPLE'S STANDARD, one dollar per year. 

Address, PEOPLE'S STANDARD, 

513 Elm St., St. Louis, Mo. 



Man's Mistake 



MARTIN HEMMY 






/ 



1895. 

AMERICAN EDUCATIONAL PURLISHINO COMPANY, 
ST. LOUIS. 



♦V 



Copyrighted 1895. 



REMAEKB. 



Man suffers want in a world of exhaustless resources. 
Must this be so? No. It is so because we stupidly violate 
the most fundamental principle of social justice. Man's 
stupidity has done it; and man's reflection must undo it. 

The cause lies at the very foundation of our economic 
or industrial system; and the remedy is the removal of the 
cause. The remedy is simple, but effective; radical, but 
true; injustice to none, but justice to all. 

The road to reform is the ballot, the most sacred social 
institution man ever devised. If the ballot cannot secure 
reform, then the ballot must itself be reformed first of all. 
Prejudice and blind vehemence can avail nothing. Much 
less can apathy and stupid indifference reform things. An 
intelligent ballot only can do it. But it must be an intelli- 
gent ballot — a ballot directed by honest thought and calm 
reflection; where principles are considered first, men sec- 
ond and parties last; where party fanaticism is not mistak- 
en for patriotism; where our judgments are not warjDed by 
bigotry and prejudice; and where the supreme purpose is 
to follow truth and do justice. Parties, in the true sense, 
are a necessary consequence and serve a necessary purpose 
at the polls. But when they become organized machines 
to be controlled by politicians, office-seekers and demo- 
gogues, who are thus enabled, encouraged and too often 
induced, to make such parties the instruments for advanc- 
ing their own selfish interests, thwarting the popular will 
by deception and misrepresentation at the sacrifice of duty 
and true patriotism, corrupting and biasing public thought 



2 man's mistake. 

by the practice of degraded methods and arousing and fos- 
tering public hatreds and prejudices, trafficing in offices? 
gambling for profit, and making ' practical politics ° a busi- 
ness, then they become an unmitigated nuisance, a gigantic 
fraud. If such things do exist, as everyone knows they do, 
then our system of voting is at fault, and not our parties, 
much less our politicians; for parties and men are just what 
our institutions make of them. Bad men sometimes make 
good institutions, but bad institutions always make bad 
men. The principle of voting is a good one, but our system 
is defective. The tendency is for parties to become mere 
office-fishing machines and for voters to become the stupid 
dupes of their operators. This should not be. There is a 
way of conducting the ballot that will reverse this tenden- 
cy and impel voters to think, to love justice more than 
parties, to vote for principles rather than for prejudices, to 
adhere to reason instead of foolish dogmas, to forget tra- 
ditional hatreds and revive the spirit of Christian charity, 
to abolish antediluvian methods, and to promote the march 
of eternal human progress. 

Not to treat this subject at length, let it only be noted 
here that, aside from the evil which we propose to consider, 
the source and fountain-head of all political corruption lies' 
in our primary elections and conventions, which are noth- 
ing, under present methods, but tribunals run by machines 
and those seeking offices, positions, public contracts, bribes 
and other benefits. Only a very small fraction of the voters 
attend the primaries, while the conventions resulting from 
them are entirely outside of their control — leaving for the 
people nothing to do except to vote for what they imagine 
to be the least unjust nominations and principles of two or 
more machine conventions The results are most deplora- 
ble, and sometimes shocking. The convention and caucus 
system must be abolished. The people must nominate and 
vote on public questions directly at the regular elections; 
tor every function of government that can be operated by 



man's mistake. 3 

the people should be operated by the people, and such in- 
stitutions as a college of electors to choose a president, a 
legislature to choose a senator, and a convention to instruct 
the people for whom and for what principles to vote, are 
not only unnecessary, but they insult popular intelligence 
by implying that some men know more than all men — that 
the many must do the bidding of the few. 

One election is sufficient. Let the ballots be official 
and all printed alike, with a blank line instead of a party 
caption at the head of each for the voter to write the name 
of his party or principle, and a blank line after each title 
of office for the voter to write the name of his own choice. 
Every public question should also be printed on the ballots 
and voted upon, so that whatever a majority shall desire 
may be legally enacted by appropriate subsequent pro- 
cesses. In counting, the ballots may be separated according 
to parties and the number of votes cast for each party be 
ascertained, after which the votes for all persons for the 
various offices may be counted and listed for each party 
separately. From all these lists of all the various election 
districts the nominations of each party can be ascertained 
by pluralities, from constable up to the president of the 
United States, and the nominees of the party receiving the 
highest number of votes should be declared elected. 

This would put all political machinery completely and 
directly in the hands of the people and leave no chance for 
politicians and wire-pullers to force themselves and their 
schemes upon the public without the voice of the people; 
because it, would enable the people to nominate and vote 
upon all public questions directly, and thus deprive the 
machines of their power in the primaries, which could then 
exist without conventions or opportunities for corruption. 
But if primaries be still continued, they should be held for 
all parties at the same polls and at the same time just as 
are the regular elections; for their present semi-private 
character disinterests and even repels the voters. They do 



4 MAN'S MISTAKE. 

not show the comparative strength of parties, and are held 
for each party separate. Primaries now decide both issues 
and candidates, but with the masses of the voters not even 
realizing that they are held at all, much less participating 
in them, thus enabling office-seekers to do about as they 
please — and they generally do it. Here is the source of 
political corruption; here is where the public is unguarded* 
but where safeguards are needed most. 

Every phase of the ballot must be legally prescribed 
and protected, or the tendency must be toward government 
by the few and oppression of the many. With the ballot 
only half legalized democracy will become plutocracy, 

Things are not right merely because they bear the seal 
of fashion. This is a world of change, where progress never 
ends, and where perfection is unknown. What the last gen- 
eration held sacred is despised by ours; what was yesterday 
thought just is a crime to-day. For ages kings had ' divine 
rights;' to-day those rights are the divine rights of man on 
half the earth, and to-morrow it will be so in all the world. 
Slavery was once a 'divine institution;' but slavery is no 
more. Once God gave special rights to some; but now He 
gives equal rights to all. Until a few centuries ago insane 
persons were possessed by devils and spirits, and punished 
as criminals; at present insanity is a disease. Once the 
sun moved about the earth; now the earth swings round 
the sun. Once the earth constituted the bulk and was the 
center of creation; now it is the merest mote — an insignifi- 
cant speck. Once the world was flat; to-day it is round. 
Compared with Americans and Europeans the natives of 
Africa are barbarous; but compared with the civilization of 
the future ours is savagery. Back of us hang the clouds of 
superstition, war and ruin; threatening us are the hatreds, 
prejudices and delusions transcended from them; but before 
us, through the mists of all ? we see the bright star of hope. 
Man has at last begun to think; the world has become a 
world of reflection and investigation. 



MAN'S MISTAKE 



As changes have been made in the past in the midst 
of superstition and bigotry, so are changes being less 
slowly and more surely wrought in our advanced age. And 
so must it ever be. We cannot advance unless we change, 
and the extent and number of changes are the measure of 
enlightenment. Let no man think that improvement is 
impossible, for that is proof of his being an intellectual 
fossil. Such men are the world's dregs, the foes of truth 
and justice, the haters of freedom, the slum through which 
progress must wind its weary way. When did a reform ever 
come without opposition from even sincere and thinking 
men? and in the very nature of things how can a reform 
come otherwise? Every new idea, whether right or wrong, 
is opposed by all at first, and by many to the end. Estab- 
lished systems and customs are naturally and justly adhered 
to by society's best friends until those proposed to displace 
and succeed them are thoroughly studied and found better. 
We should ever watch with suspicious eye every movement 
for a change or innovation lest it be a fraud; but over 
and above all we should carefully and honestly study and 
reflect over the same lest it be or contains truth. We must 
never trust current gossip; we must search for the facts, or 
we cannot find them; we must investigate, or we must be 
deluded; we must think, unless we choose to be fools. 

Our glorious Republic, the grandest system of govern- 
ment the world has ever known, is yet full of defects. We 
have led the world for over a century, but we can continue 
to lead only if we continue to advance at an accelerate rate. 
In the midst of prosperity, wealth and magnificence we see 
involuntary destitution and crime. We have aristocracy; 
but we also have 'trampocracy.' We have schools and col- 
leges; but we also have jails and prison dungeons. For 
every person of leisure and comfort we have scores of hard 
and unceasing toilers. For every mansion we have a hun- 
dred squalid huts. For every millionaire we have a thous- 
and miserable men seeking and unable to find employment. 



6 MAN'S MISTAKE, 

Our liberties are marred by oppression, and our Christian- 
ity is polluted with silly dogmas and vile prejudices. We 
are tending, not toward equality, but toward inequality. 
We are rapidly approaching the condition where the earth 
will be owned by a few and starvation must be the only 
hope of the masses. 

With every invention and every advance in the meth- 
ods of production does want seem to increase and labor 
to become less profitable. The marvelous improvements in 
machinery and all the various appliances for production 
have within the last fifty years increased the power of labor 
more than twenty-fold— in many instances more than a 
hundred-fold — but have they increased the reward of labor 
one cent? and have they made it any easier to secure em- 
ployment? 'Learned' men frequently say yes; but plain, 
practical, common-sense people of actual experience nearly 
always say no. But supposing wages have increased, have 
they become twenty times as great as they were fifty years 
ago? and is employment twenty times as easily obtained? 
If not, then there is manifestly something very wrong. It 
is doubtful whether actual wages (i. e. purchase power) 
or the ease to secure employment have increased at all, and 
only a fool can say that they have increased anything like 
proportionately to the increase of productive power. And 
let us not imagine that capital gets labor's share, for the 
return to capital is no greater than that of labor. Neither 
is the small return to labor and capital due to a necessary 
or actual waste or drain in constructing and maintaining 
machinery, etc.; for the cost of these elements is a mere 
trifle compared with their results But this vast increase 
of wealth produced by labor and capital does go somewhere, 
and evidently where it should not go. There is a great leak 
somewhere, and not until we find it can we find the true 
remedy. 

Poverty on the part of the poor and fear of poverty on 
the part of the rich are steadily increasing, and, more than 



man's mistake. 7 

all other influences combined, lead to selfishness, greed and 
crime among all. The true remedy must make it possible 
for all able and willing workers to obtain employment at 
all times and at fair wages. This would stop involuntary 
poverty, make the hardest toilers the richest, confer upon 
genius its highest reward, and leave only those who will 
not work go hungry. It would make fear of want unknown, 
and thus remove the chief temptation for lieing, deception 
and fraud. It would make men better as well as richer. 

Hence, this is a moral problem as well as an economic 
problem. Ay, the world can never be ' Christianized ' until 
it is solved. Creed patriotism and hatred of those who do 
not believe as we do is not Christianity — it is the vilest 
state of religious bigotry and can be entertained only by 
minds that are completely divested of every sense of mag- 
nanimity and fairness. The cultivation of prejudices and 
predilections cannot lead men to truth, but must keep them 
far from it. Yet, truth alone can make men good; but no 
man can find it and realize it save by dispelling all such 
feelings and thinking for himself. To make men good we 
need only tolerate and respect their individual opinions as 
well as our own and give them time and opportunity to 
think. 

Men are bad because they do not think, and they 
do not think because they have not time — the poor are 
haunted by the thought of want and the rich by the greed 
for more Give men an easier way of making a living and 
they will take more time to think and become better, nobler 
and more worthy beings. Giving men opportunities to be 
good is the best way to make them good. Persuasion will 
only make fools, for fools only can be persuaded. Men 
must make themselves better, and they can do it only by 
thinking for themselves. They must be enabled to find 
leisure and relief from the strain of the thought and fear of 
want, must cultivate .their mental faculties, must learn to 
know themselves, must see and realize the true meaning of 



8 man's mistake. 

truth, must follow the dictates of their own individual con- 
victions instead of trusting bigotry and custom. Let us 
have faith in our own sense of justice, but doubt all theo- 
ries of man. Let every man trust his own god who speaks 
to his own soul through his own brain. Then, and not till 
then, will he be a Christian. 

Men commit crime because they possess false ideas of 
real justice. In other words, ignorance is the cause of 
crime. But men are most ignorant when they suffer the 
worst social conditions, and least ignorant when they enjoy 
the best. Injustice produces ignorance, and ignorance pro- 
duces crime. Let us establish social justice, and crime will 
disappear. There is something in our economic system 
that drives men to prison dens and suicide graves. Our 
laws make criminals. 



ECONOMIC PRINCIPLES. 



Political Economy is the science of the laws of the: 

1. Production of Wealth. 

2. Distribution of Wealth. 

The business or economic world is a world of produc- 
tion and distribution of wealth. All men are or should be 
engaged in the same, since life, liberty and happiness 
depend upon our ability to produce and secure wealth. 
Without wealth we cannot live. We may inherit or beg it; 
otherwise we must produce it, steal it, or die. But no one 
should live by the labor of others. Everyone who is able 
to work should work; for nothing is more honorable than 
honest toil. 

The problems of the production and distribution of 
wealth are accordingly the great problems of man; and 
since it is through government and the ballot alone that 
they must be solved and applied, if government is a proper 
agency, it is manifestly most important indeed that every 
voter shall study and understand the same. Production 
and distribution are the subjects of the labor problem, and 
the labor problem is the problem of the hour. 

Unfortunately some of the most fundamental princi- 
ples of this great science were not fully recognized by its 
illustrious founder; and accordingly did he not only fail to 
fully or clearly unfold them, but he was led into a fatal 
error. So great, however, was the confidence in his funda- 
mental conclusions that few of his successors or subsequent 
writers on economics thought it worth while to doubt the 
propriety of the same; and none, until recently, were fortu- 
nate enough to reinvestigate or bold enough to thoroughly 



10 man's mistake. 

and clearly present his blunder. Wherever men wander 
from truth do and must they differ in opinion; and this is 
why they wrangle and form so many and such conflicting 
theories on economic laws. Hence the positive necessity 
of trusting no doctrines, but of every man investigating 
and thinking for himself. 

Much confusion also arises from the indefinite mean- 
ing given important terms, and using the same terms in 
different senses. This must be avoided in exact reasoning, 
or it will be impossible to understand even ourselves, much 
less to make ourselves understood by others. Let us, then, 
give each of such terms a suitable and precise scientific 
meaning and use the same in no other sense at any time. 

PRODUCTION OF WEALTH. 

Land — The earth, the land, is labor's store-house and 
work-shop. From it alone can we obtain the materials and 
opportunities to provide ourselves with food, clothing and 
shelter, and all things that toil can give us for comfort and 
pleasure. Land is the source of all wealth. Without it 
there can be no opportunities to work, no production of 
wealth, no way of avoiding starvation. By the term 'land' 
we mean all natural resources or opportunities, whether 
mines or forests, plains or mountains, lakes or rivers, seas 
or oceans. 'Land' means all natural opportunities to pro- 
duce the necessaries and comforts of life. 

Labor.— But land in itself can produce no wealth; for 
nothing is wealth in the economic sense until human en- 
ergy has been conferred upon it. Fruits that grow wild are 
not wealth until human energy has gathered them, and the 
fish in the sea are not wealth until human energy has drawn 
them out of the water. No wealth can be produced with- 
out human energy. Human energy is as indispensible in 
production as is land. Human energy and land produce all 
wealth. Let us call human energy devoted to production 



man's mistake. 11 

'Productive Human Energy,' including brain energy as 
well as muscular energy Now, all productive human 
energy which is yet to be exerted, and none that is already 
exerted, is 'Labor.' Labor, therefore, is a factor existing 
in man's mental and physical capacity only. 

Capital. — But no sooner is productive human energy 
expended than it ceases to be labor and becomes wealth. 
Land and productive human energy produce wealth, but 
all wealth intended to assist labor in the future is ' Capital.' 
Hence, being an assistant of labor, capital becomes itself a 
factor in production. But, unlike land, it is an artificial 
and not a natural force — it is produced by labor, by human 
energy, and is accordingly nothing but human energy in a 
different form from that called labor. Labor is productive 
human energy yet to be exerted, while capital is the same 
already exerted. Capital is productive human energy 
stored-up, so to speak, in objects derived from land and 
intended to assist labor — wealth that is not intended to 
assist labor being not capital, but wealth merely. 

Land, labor and capital are the factors of production. 
In all the wide world of industry there are and can be no 
other factors that can assist in production. But before we 
pass beyond the discussion of what these factors really are 
let us be sure that we possess a full and clear realization of 
their import, and then never attribute to any of them any 
other sense or meaning. 

There is no difficulty in ascertaining the exact meaning 
of the terms ' land ' and ' labor,' as used in political economy. 
Land means all natural elements and forces of nature out- 
side of man which enter into the production of wealth — 
land means natural opportunities to produce wealth. Labor 
is the mental and physical power of man to produce wealth 
when applied to land — that is to natural opportunities. It 
is always an unexpended force; for as soon as it is exerted 
it becomes economic wealth. 

But it is not so with capital; because not all wealth is 



12 MAN'S MISTAKE. 

capital. We must distinguish between wealth that is and 
wealth that is not cajDital, and this is a problem which has 
not yet been thoroughly and clearly solved. The definition 
given on the preceding page and in what follows seems not 
only the most scientific and appropriate, but is that which 
modern views seem to most generally accept. 

Laborers can always accomplish more in the end by 
devoting a part of their energy or labor in making tools, 
machines, appliances, fixtures, factories and so forth, to 
assist their future labor. Hence, besides using our brains 
and muscles in production we also use these things, which 
are productive human energy already exerted and called 
capital. 

All wealth by the use or keeping of which we expect 
to become richer or increase our wealth is capital, while all 
other wealth is wealth merely. The clothes men keep in 
their stores for sale are capital; but the clothes they wear or 
intend to wear are not. Pianos, furniture and carpets kept 
for sale are capital; but those in our homes are not. The 
house you keep for sale or to lease is capital; but the one 
you live in or intend to live in is not. Your farm is cap- 
ital; all your barns, wells, ditches, fences, orchards, crops, 
cattle, sheep, machines, tools and implements, are capital, 
since you use them to create wealth. But the house you 
live in, your horse and carriage used for pleasure riding, 
your watch and piano, and all things which you have' de- 
voted to your own personal enjoyment, are not capital, since 
they are withdrawn from industry and production and no 
longer concern economies or business — they are wealth 
merely. Wealth that is capital may at any time cease to be 
capital — that is, when it is consigned to personal enjoy- 
ment and therefore withdrawn from production. And just 
so may wealth that is not capital become capital — that is, 
if for any reason you conclude to sell or exchange any of 
the articles which you had consigned to your personal com- 
fort only. All wealth or commodities of production are 



MAN'S MISTAKE. 13 

capital until they are no lunger to be exchanged or used 
in production. Wealth that is not capital does not concern 
political economy, since it is no factor in production. 

Money is not capital unless it contains an intrinsic 
value in itself, and then it is capital only to the extent of 
such value. Notes, checks, bonds and mortgages are not 
capital in any sense. They guarantee capital to their own- 
ers —they represent capital, and are merely evidences of 
debts. Money is a medium of exchange — a measure of 
values — and as such it does not need to embrace any value 
in itself. Capital is real wealth in the course of exchange. 

The meaning of the words ' wealth ' and ' value ' might 
perhaps have been considered to greater advantage at the 
outset, since political economy treats only of wealth or val- 
ues and their production and distribution. Wealth and 
value mean exactly the same thing. But we speak of the 
products of labor as containing values, or as being wealth. 
We say, < the value of productions,' and, ' the wealth of men.' 
The total values of all the products of labor belonging to a 
man constitute his wealth. Wealth is collected values, and 
can exist only as the result of labor applied to land. Men 
sometimes speak of natural things, untouched by human 
energy, as being wealth or having values; but that sense is 
never given those words in political economy, which is not 
concerned in natural things, but only in the results of labor 
applied to natural things. A forrest that has been planted 
and cultivated is wealth to the extent of such labor con- 
ferred upon it, while a much better forrest that was never 
touched by human hand is not wealth at all. A natural 
forrest or opportunity of any kind may be of incalculable 
advantage to its owner, and may enable him to make great 
fortunes with little labor, but it is not economic wealth. 
On the 'other hand an almost worthless patch of ground is 
wealth if labor has been spent upon it — unless, of course, 
such labor was spent unprofitably or its results were swept 
fcway. The best as well as the poorest natural opportunity 



14 MAN'S MISTAKE. 

can be wealth or have economic value only after labor has 
been spent on it, and then only to the extent of such labor. 
Economic wealth or value is exerted labor. 

The methods of producing wealth or values are most 
varied and intricate indeed. To ascertain all of them is 
impossible, and to state half of them would require many 
volumes. Whatever is done to cause value in a hitherto 
valueless object, or an increase of value in an object already 
made valuable by previous labor, is true production. 

The lumberman chops down a tree; the teamster hauls 
it to a mill; the sawmill man saws it into boards; the lum- 
ber merchant stores it away to dry and for safety; the rail- 
road man transports it to a planing mill; the planing mill 
man planes it; the lumber agent takes charge and delivers 
it to a manufacturer; the manufacturer uses it to make a 
harvesting machine; the dealer in agricultural implements 
stores and keeps it in readiness for farmers to examine and 
purchase whenever needed; and finally the farmer takes it 
to cut his grain. Each party mentioned gave value to the 
lumber, and each was a producer of values or wealth, for 
every successive step taken was a necessary step requiring 
necessary labor and capital applied to land. The lumber- 
man's ax was his capital, his energy expended his labor, 
and the ground and tree his land. In a similar manner will 
it be seen that each of the others employed land, labor and 
capital. Each successively gave it additional value, and 
each was a legitimate producer. 

Of course, nearly every one of these divisions of labor 
is subdivided, and some re-subdivided perhaps again and 
again. In the making of the harvesting machine iron and 
other metals were also required, in the production of which 
there are still greater divisions and subdivisions of labor. 
Now, what is true of the production of harvesting machines 
is equally true of the production of nearly all of the count- 
less thousands of commodities produced by man. It is im- 
possible to enumerate all the different ways by which val- 



MAN'S MISTAKE. 15 

ues are created and caused to be created. And this almost 
indefinite division and subdivision of labor is of very great 
advantage in every respect. Labor thus becomes far more 
profitable and efficient. There are very few articles pro- 
duced that do not require the passage through very many 
or an almost countless number of hands. 

But there are five general ways in which values are 
produced, namely: 

1. Modifying objects derived from land. 

2. Transporting such objects. 

3. Storing such objects. 

4. Displaying such objects. 

5. Augmenting the volume and efficiency of labor. 
Modification (the first) enters into the production of 

nearly all commodities. In the case of the harvesting ma- 
chine already mentioned a great many successive modifica- 
tions of objects were required before the machine was fin- 
ished. The first value was given the wood by the man who 
fell the tree; the man who sawed it into boards increased 
its value; the planer again increased its value; and the 
manufacturer once more increased its value. 

Transportation (the second) is indeed a most important 
element of production. Hauling the tree just mentioned 
to the mill gave it value and was production as truly as was 
the sawing of it into boards. Conveying the boards to the 
merchant's yards, and later transporting them to the plan- 
ing mill, and then again to the manufacturer, each in turn 
gave it additional value, and each was in the truest sense 
production of wealth. When the machine was finished it 
was shipped to a distant town, and this once more gave it 
value, since it was worth more at said distant town than at 
the factory. 

Storage (the third) is also an important and necessary 
element. After every successive modification or transpor- 
tation an object must be sheltered and preserved from the 
destructive influences. The lumber merchant and agent 



16 MAN'S MISTAKE. 

before mentioned each gave additional value to the wood 
by storing and protecting it until needed by the planing 
mill man and manufacturer respectively. Storage necessa- 
rily constitutes a very large part of production. 

The fourth, or displaying and advertising goods, is as 
necessary as any other part of production, although it is 
true that at present there is much labor needlessly wasted 
in this branch of industry. People desire to see goods 
and know what they are before they will exchange for the 
same; and, accordingly, the placing and keeping of goods 
where they can be conveniently seen and examined, and 
making known their existence, merits, values, and how they 
may be secured, constitute a perfectly legitimate and neces- 
sary part of production. It takes labor to do the same, and 
goods are more valuable when made familiar to people and 
placed within their easy reach. Hence, values are created 
in this manner as truly as in any other. 

The fifth, called personal services, is an element which 
does not produce wealth directly, but does produce wealth 
indirectly and is, therefore, true production in every sense 
of the word. Any person who does something which en- 
ables another person to produce more than he could other- 
wise produce is a real and true producer of wealth. The 
teacher enables parents to devote their time to production 
instead of teaching their children — so far as the teacher's 
work goes. The doctor in preventing and curing diseases 
and directing the preservation of health by his superior and 
special skill enables others to do more work and is a true 
producer of wealth. The same is true of lawyers and all 
those engaged in necessary professions and occupations 
which in any way augment the volume and efficiency of 
labor. * Such professions as gambling, however, are neither 
necessary nor useful occupations. They neither produce 
nor enable others to produce wealth. They merely destroy 
and rob men of their wealth, and the gambler's services are 
demanded only by those who desire to do likewise. 



man's mistake,. 17 

What is true in this respect of the wood used in the 
harvesting machine is equally true of the metals used in 
the same; and what is true of the objects or materials used 
in the production of this machine is in a measure, either 
more or less, true of practically every other machine or 
commodity of any kind whatever. Production is creating 
values — no matter by what method or methods. liaising 
grain and stock or making boots and shoes is production 
just as much as but no more than is keeping store or exhib- 
iting and advertising the products of industry — each is an 
essential occupation, and each gives value to the objects or 
products employed. And so is operating a telegraph or a 
telephone, conducting a school or a theater, or practiceing 
law or medicine, production as truly as is operating a rail- 
road or running a steamboat. The latter create values by 
doing a necessary work — by changing the position or loca- 
tion of objects, whether modified or not, whether raw or 
finished or partly finished --but the telegrapher, teacher, 
actor, lawyer, and doctor, each does an equally necessary 
work, not creating values directly, but enabling others to 
do so, thus, each being a true and real producer of wealth 
in every sense of the word. 

Let it be remembered, however, that, no matter how or 
in what manner value or wealth is produced, there are and 
can be only three factors of production, namely, land, labor 
and capital. These three produce all wealth. Sometimes 
wealth is produced by land and labor only. Wealth can be 
produced to a small extent without capital, but never with- 
out both land and labor. Land and labor are both abso- 
lutely necessary in the production of everything. There 
can be no wealth without labor, and there can be no wealth 
without objects or elements of nature — land. 

Let it also be clearly understood and remembered that 
land is natural opportunities, and that labor and capital 
are the same thing in different forms — both are productive 
human energy, which, previous to its exertion is called 



18 man's mistake. 

labor, and after such exertion wealth — that part of wealth 
which is intended to assist in future production being 
called capital. Capital is only stored-up labor, so to speak. 
Hence, capital and labor must be governed by the same 
laws, must have the same interests, and might be called by 
the same name and treated as one factor. 

DISTRIBUTION OF WEALTH. 

We have now observed how wealth is produced, and 
by what it is produced. Our next step is to see how this 
wealth is distributed, and to whom it goes. This is a most 
important but not at all a difficult task — providing only 
the student will trust to his own plain common-sense, and 
not be guided by preconceived doctrines or influenced by 
prejudice. Let the reader doubt or question every asser- 
tion or explanation of any kind whatever, whether made in 
this discourse or by any other authority, until the same 
shall harmonize with every fact known to himself and be a 
real conviction of his own. Unless you will ultimately trust 
to the dictates of your real own judgment you cannot hope 
to know or to learn. He who thinks, not he who reads, is 
wise. One's wisdom is measured not so much by what he 
knows as by his capacity to think and learn. Let us admit 
our errors when we find them and rise above bigotry and 
partisanship. Let us be candid. Let us be free men in 
mind. Let each of us follow truth as we each individually 
see it. Let us do justice to our own consciences and our 
own selves by doing justice to mankind. If we shall find 
a defect in our economic or industrial system which causes 
strong men to want, loving mothers to weep, and children 
to shiver and die, let us be men; let us do our duty; let us 
not sleep while our sisters and brothers do suffer; let us do 
the only effective things we can do, namely, cast an honest 
and intelligent ballot; let us wage the peaceful battle at 
the polls; and let us never tire or cease until victory shall 
have crowned our cause. 



MANS MISTAKE. 19 

Every man is entitled to all that he produces. It may 
be one's moral duties to devote the results of his enterprise 
to certain purposes or for certain objects besides his own 
immediate pleasures or those of his relatives; but this is a 
matter over which he alone is to decide, and no law should 
oblige him to give up any part of it at any time or for any 
purpose — save, perhaps, if there be no other way to avoid 
an impending calamity; and in that case his loss should be 
made good. Under all ordinary circumstances it must be 
a crime for an individual to take any part of a man's honest 
toil, and a far greater crime for the state to take the same. 
On the other hand, no man is entitled to anything that 
he does not produce, no matter what the circumstances may 
be, and it is as unjust for the public to empower any man 
or any class of men to keep anything that he or it does not 
produce as it is to take from men anything that they do 
produce; for, so long as there is more than one man living 
one cannot keep what he did not produce without robbing 
the other — even if neither produced the same, in which 
case it must of right belong to both equally. Of course it 
is not so with what men inherit or obtain by gifts or char- 
ity, which things justly belong to those receiving them, 
providing only they are obtained from rightful owners. 

For the same reasons that individuals should receive 
all and only what they produce should the public receive 
all and only what the public, or all the people as a whole, 
produces. The public has not only a right to take what it 
produces, but it commits a crime if it does not do so, and 
a still greater crime when it takes from the honest toil of 
industrious individuals, while leaving its own product to 
be divided among a few, who are thus enabled not only to 
get rich whether they work or not, but to monopolize not 
only the earth itself, but all that the earth brings forth. 

There can be nothing more manifest to the crudest 
sense of justice than that to every man belong the results 
of all and .only his own toil, and that the same principle 



20 MAN'S MISTAKE. 

applies to society or the state as well as to individuals. If 
we are not to admit this much, then indeed, may we find 
excuses for the prevailing misery and forced idleness, and 
fail to see a remedy. But the honest investigator who does 
admit it will be sure to find the cause and the cure if only 
he, will pursue the subject through all its phases and to its 
logical conclusion. It is astonishing how many people are 
impressed with the idea that a thing is right because it is 
law or ancient custom. Even though they say differently 
at times, and seem to know better, they are yet uncon- 
sciously influenced and often positively governed by this 
foolish sentiment — it seems so hard to rise above fashion. 
Let us realize that we may find a law of the state which is 
in conflict with a law of nature; and ht us in such event 
admit that the former is wrong and n ast be made to cor- 
respond with the latter — that natural law is the only just 
law — that human law is just only when it is natural law. 

Since land, labor and capital produce all wealth, it is 
evident that the owners of land, the owners of labor, and 
the owners of capital must or should receive all wealth — 
the values of the use of land in production should go to the 
rightful owners of land, the values of labor expended in 
production. should go to the laborers, and the values of the 
use of capital in production should go to the capitalists. 
Of this there can be no possible doubt — the only question 
being, 'Who are the rightful owners of these factors of 
production, land, labor and capital?' and this we are now 
to consider. 

It is clear to all that the rightful owners of labor are 
those who possess the power to labor — a power that nearly 
every human being embraces; we can all work, either with 
brain or hand. Each man is the rightful owner of his own 
power to work, and is justly entitled to the full value of 
his labor expended in production. 

The rightful owners of capital are those who obtain it 
by their own labor, by inheritance, or as gifts. There can 



MAN'S MISTAKE. 21 

be no doubt of this, regarding the statement in the fullest 
and broadest sense. There can be no other just claim to 
any form of wealth, or to anything on earth, remembering 
too that inheritances and gifts from none but rightful 
owners can be just possessions. Of course the capital a 
man uses or gives for use in production is equivalent to so 
much labor — it is his past labor and justly entitles him to 
the full value of its use in production. 

The value of the use of land in production likewise 
belongs to the rightful owners of land. But who are the 
rightful owners of land? Let us see. 

In the course of my remarks questions will suggest 
themselves to the thinking reader; but these will be found 
answered somewhat later. For the present let the reader 
assume that they can be explained and made to harmonize 
with the principles previously ascertained or asserted; and 
when they are reached let him judge if such is the case or 
not. If not, he can then reject all that he assumed. 

Capital is nothing but exerted labor, or the products 
of individual men, and, therefore, of right belongs to indi- 
vidual men — to those who produce the same. Labor is a 
power given by nature to individuals, and must, therefore, 
belong to individuals — everyone being entitled to all and 
only what nature gives him. Land is not the product of 
men, but of nature; and it is not, like labor, invested by 
nature in individuals, but in mankind. Nature says: 'The 
land belongs to you all; use it for the good and glory of all.' 
Land is the gift of nature to all men. It was here before 
we were born, and it will be here after we shall have bid 
farewell to earth. Yesterday it belonged to our ancestors, 
to-day it belongs to us, to-morrow it will belong to our 
posterity. But never did or can it belong to individuals, 
much less a class of individuals — it is and forever must be 
the property of all men equally. Kings and tyrants took 
the lands from the people to reward their petty lords and 
servants, and soon it became a custom of governments 



22 MAN'S MISTAKE. 

(which in those days were little less than organizations of 
selfish and brutal tyrants to delude and oppress the people ) 
to sell or give the land as private property to individuals 
for services or certain considerations — this system remain- 
ing or continuing in force as governments were being later 
reformed by the people as they became more and more in- 
telligent and demanded more and more of their rights; so- 
that even now, and even in nations having the best govern- 
ments and the most enlightened people, this land system, 
which was originated by bloodshed and terrible injustice, 
is commonly regarded as proper, but merely because it is 
custom, because its origin is not understood, because no 
just system was suggested, because people have not yet 
fairly begun to think about it at all. Indeed, not only do 
the first principles of natural justice unmistakably indicate 
the fact that the land belongs to all men equally, but even 
our very instincts would show it if we were not accustomed 
to our system, as is the case everywhere among men who 
have not yet adopted civilived methods that include our 
barbarous land system. 

But we look again. Since men cannot produce land, 
and can produce nothing without land, to deprive one of 
the right to land is to deprive him of the right to live ! If 
all men are created equal, inasmuch as all men have equal 
rights to life, liberty and the pursuit of happiness, then all 
men must possess equal rights to the use of the earth, the 
land. Nothing can be more self-evident than this. Every 
human being, from the day he is born to that on which he 
dies, has an equal right with every other living human 
being to the use and enjoyment of nature's opportunities, 
the land. We may and do make and enforce laws depriv- 
ing some of the right to live — by depriving them of their 
right to the use of land! And what should we expect as a 
consequence? Can we expect anything better than what 
we have — involuntary idleness, poverty, hunger, despair, 
death! The earth is sold! We must buy it or starve ! 



man's mistake. 23 

We have observed that the values created by capital 
or the use of capital belong and should go to the owners of 
such capital; that the values created by labor belong to the 
laborers; and that the values of the use of land belong to 
the owners of the land — to the public. Now, the return to 
capital for its use in production is called ' Interest;' the 
return to labor is called 'Wages;' and the return to the 
land owners for the use of land is called 'Kent.' 

Whatever is paid for the use of machinery and houses, 
as well as for money, is interest, since all are capital or the 
title to capital; whatever is paid for labor of any kind is 
wages; and only what is paid for land or the use of land, 
exclusive of all improvements upon the same, is rent — im- 
provements on land, whether fences, ditches, orchards, 
houses, sheds, barns, shops, stores, factories, or otherwise, 
being capital if concerned in production or exchange, and 
wealth merely if not, but never included in the meaning of 
the term 'land.' By 'land' we always mean all and only 
the natural earth, natural opportunities, natural power of 
land separate or apart from anything and all that man has 
put upon it or in any way connected with it, whether sep- 
arable or inseparable. For example: A farm, the improve- 
ments on which would cost or are worth $5000, will sell for 
$8000. The land, then, is worth $3000 and the capital or 
improvements upon it $5000. Suppose this farm is leased 
for $800 a year. Then $500 of this is interest and $300 is 
rent. The value of land improvements is not rent, but in- 
terest, economically speaking. 

In order to correctly understand what we are soon to 
consider it is necessary to fully realize throughout our dis- 
cussion the exact meaning of the terms 'interest,' 'wages' 
and 'rent,' as above defined — the part of production that 
goes to reward capital being interest; that which goes to 
pay labor being wages; and that which goes to pay for the 
land or its use being rent. The terms ' interest ' and ' wages ' 
are used in a much broader sense in political economy than 



24 MAN'S MISTAKE. 

is commonly done by some, and ' rent ' in a very much re- 
stricted sense. Let us, therefore, be sure that no confusion 
of thought shall prevail respecting these as well as other 
important terms, or failure to discover the truths we seek 
must be inevitable. 

All the wealth produced in this world is distributed 
among the three factors which produce it, land, labor and 
capital, and is designated as rent, wages or interest, accord- 
ing as the one or the other of these obtain the same. Rent, 
wages and interest secure all values. Values can find no 
other channels and can ^o nowhere else, unless disguised; 
for there is no other element besides these three considered 
or even fancied in distribution — neither is it possible for 
another to exist without another or fourth factor of produc- 
tion. It is clearly evident that all wealth is absorbe 1 by 
rent, wages and interest. The only question is, does oach 
of these obtain its just share, or are there conditions, agen- 
cies or influences that cause any of the three to secure too 
much or too little — is there anything that robs the one for 
the benefit of either or both of the others? 

And here, indeed, is where every reformer declares is 
the fault of our economic system. In fact, it is most evi- 
dent that if a fault exists at all it must lie chiefly in the laws 
of distribution. But how varied and even conflicting are 
the opinions entertained I Everything seems to be confu- 
sion — nay, utter chaos! Men see that the trouble rests in 
distribution somewhere; but they fail to see what it is, and 
they fail to see it because they do not search far enough, 
do not sift to the bottom, do not avoid and escape the hold 
that custom and established or preconceived theories have 
upon them, do not take practical views of things, do not 
rely sufficiently upon plain common-sense and practical 
facts. Let us, therefore, consider this part of our investi- 
gation with especial care, and let us review the entire field 
covered by it. Let us be slow and sure in reaching con- 
clusions, and let us realize the full import of every fact and 



man's mistake. 25 

circumstance that may be met; for we are now facing the 
problem that has baffled mankind for centuries, but which 
our age is destined to solve. 

Probably all men at all times have, to some extent at 
least, exchanged their products with one another; and as 
. civilization advanced did their systems and methods of ex- 
change become more and more extensive and .complex. No 
nation ever became great or wealthy without vast facilities 
and the free and general practice of exchange or trade. In 
fact, other conditions being equal, all nations have always 
prospered in proportion to the facilities, freedom and extent 
of their trade — both domestic and foreign. Men can live 
without exchanging their products; but they can always 
secure great mutual advantages and become far richer by 
exchange or trade. He who will not trade must raise his 
own wheat, grind his own flour, bake his own bread, saw 
his own lumber, build his own house, manufacture his own 
furniture, weave his own clothes, make his own shoes, and 
produce all his own tools — which means that he must for- 
ever be a poor wretch. And just so must the nation that 
obstructs trade with other nations suffer a like result. One 
country is best adapted to produce grain, while another is 
fit mainly for the production of metals; one has timber, 
while another has none; one produces unlimited quantities 
of fruit, and another cannot produce any. How greatly, 
therefore, must trade benefit both men and nations. 

For this reason, because of our remarkably advanced 
methods of production, and because of our consequent al- 
most indefinite division and subdivision of labor, has trade 
become so universal, vast and important that the distri- 
bution of wealth is regulated entirely by it and the prices 
that prevail. Prices regulate the distribution of wealth 
among rent, wages and interest ; but prices are regulated by 
the laws of supply and demand. The word 'price,' though, 
is not an absolute, but only a comparative term. The price 



26 man's mistake. 

of a commodity is its value in comparison with some other 
commodity taken as a standard. By common consent and 
common interests the world has selected gold as such stan- 
dard, whether wisely or not. When we say the price of a 
commodity is five dollars we mean that it is as valuable as 
a certain weight of gold; and in exchanging the same the 
oWner will demand either that amount of gold or something 
as valuable as that amount of gold. 

By ' exchange ' is meant not only exchanges of com- 
modities for commodities, commodities for coined metals or 
currency, commodities for personal services, and so forth, 
but exchange of anything whatever concerning production. 
Exchange of labor for labor, labor for land, land for capital, 
capital for labor, etc., no matter in what forms or manner, 
are all embraced in the meaning of this term. Indeed, one 
can now rarely find an act of production that is not at the 
same time also an act of exchange. Practically, as well as 
theoretically, every production is accompanied by an ex- 
change with its regulating price — that is, the distribution 
of wealth is determined with its production, distribution 
being governed by prices in exchange. 

But prices are governed by supply and demand. The 
chief consideration in production always is to engage in 
whatever enterprise that is most probable to yield the best 
results, which must tend to cause a maintenance of prices 
at their normal or comparably proper hight — that is, tend 
to make all pursuits as nearly equally profitable as possible, 
providing only that all are equally free to engage in every 
line of production. Should there be a sudden destruction 
of a great number of sheep by disease, wool and mutton 
would become scarce and rise in price accordingly. This 
would make sheep raising more profitable than other pur- 
suits in general, and where the danger of disease no longer 
existed an increased number of people would immediately 
engage in the business until the supply would be equal to 
the demand — that is, until sheep raising has ceased to be 



m 

more profitable than other pursuits generally. However, 
a greater number having become prepared to raise sheep, 
there will be a general disposition to stay in the business, 
so that the supply may soon become even greater than the 
demand, and the profit be less than in other occupations— 
which, unless the demand increase, must gradually cause 
some to engage in something that they find more profitable 
and promising until the general profit will once more be 
the average of profits of all industries. Thus we see that if 
there is equal freedom for all men to employ themselves in 
the business the reward or profit of the same will naturally 
be kept, in the most perfect manner possible, on an equal- 
ity with that of all other forms of production, so that on the 
whole sheep raisers cannot secure more in distribution for 
their labor and capital invested than can laborers and cap- 
italists engaged in other occupations, while on the other 
hand they can obtain just as much. The returns to labor, 
land and capital employed in the business will be made 
equal to such returns in all other industries — wages, rent 
and interest will here absorb as much as and no more than 
elsewhere — supply and demand here regulate distribution 
in a most exquisite and just manner, upon which no human 
law can possibly improve — here freedom is justice. 

And just so it is with the production and distribution 
of every form of wealth when all are equally free to use the 
natural opportunities of production. Absolute industrial 
freedom and the natural laws of supply and demand are the 
perfect and only true regulators of prices or distribution. 
How can there be an unfair or inequitable distribution of 
wealth under such conditions? Indeed, not only common 
sense, but our very instincts or first impressions, would tell 
us that it is impossible. The fault in our methods of dis- 
tribution cannot lie in the operations of natural laws or too 
much freedom, but must lie in the violation of natural law 
and the hampering or restriction of freedom of production. 
However, let us be sure; and let us see just where and how 



28 man's mistake. 

our methods or laws violate these simple, self-evident and 
fundamental laws of nature in distribution. 

Supply and demand not only tend to make rent equal 
everywhere, wages equal everywhere, and interest equal 
everywhere; but for the same reason do they cause a just 
and equitable division among rent, wages and interest. In 
the first place, if all values of the natural opportunities, or 
land, find their way into the public treasuries and are used 
for public purposes there can be no possible wrong or need 
of apprehensions in this direction, since they are produced 
by the public, or by all men who work, and therefore must 
belong to the public, or to all men equally. Even if these 
land values, which constitute rent, be unnaturally high for 
any reason, there can be no very serious mischief; for, with 
but few exceptions, all men pay rent, either directly or in- 
directly, actively or passively, consciously or unconsciously, 
and whatever is thus paid will revert to the equal benefit 
of all. If, when the public secures all rent, there be any 
robbery there must also be an equal amount devoted to the 
good of the entire public. But it will subsequently appear 
most obvious that under such conditions rent can never be 
too high, and that it must and can rise only naturally and 
to the equal advantages of all. Let rent go where it justly 
belongs and there can be no robbery on the part of rent; for 
rent, like wages and interest, is regulated by supply and 
demand. Rent must rise or fall exactly as the demand for 
land shall rise or fall. The demand for land, by the way, 
can and must rise or fall only as industry or labor increases 
or decreases; and industry, or the total volume of labor, 
must increase as population or the power to utilize land 
increases, but cannot decrease unless population or enter- 
prise and civilization shall decrease. In short, rent rises as 
progress advances, and can fall only by deterioration and 
decay , Rent is created by general industry, or by all the 
people as a whole; and if it be appropriated for the general 
good of all there can be at least no serious result. 



man's mistake. 29' 

If rent shall go to the public no injustice can arise 
on the part of rent. But if it goes to private individ- 
uals injustice must arise, not only in that the public 
is robbed of what the public produces, but inasmuch 
as this must create monopoly in nature's gifts to all,. 
and without which life itself is impossible — and what 
is still worse, such monopoly impedes industry, les- 
sens the opportunities of labor to use the earth, in- 
creases labor competition, and forces wages down to 
the merest possibility of making a living. 

And how is it with labor and capital? Who can 
claim, or even suppose, that wages obtains too large 
a share? Such a thing is never thought of, and is T 
manifestly, impossible; for in labor there exists every 
possible element that can in any way promote compe- 
tition, and none that can check the same, which must 
force wages down whenever occasion requires it. In- 
deed, observations everywhere most clearly and un- 
mistakably demonstrate the miserable condition of 
labor. All desire and have long been trying to protect 
labor — some by taxing labor, but few by extending 
justice to labor and permitting labor to protect itself.. 
Surely, wages is not the robber. Neither is it interest; 
for capital and labor are the same thing, and interest 
and wages should be and are governed by the same 
natural laws. Money and capital are largely withheld 
from industry by the same discouraging influences that 
bar out labor, and it is not only reasonable to infer, 
but there can be no other conclusion than that interest 
in itself gets little if any more than wages. 

But to make sure of our conclusions let us now 
briefly trace facts to their real source. We must now 
see just how our present economic or industrial system 
operates, what agencies influence prices and distribu- 
tion under the same, whether such agencies are just or 
unjust, and what will destroy the latter. 



30 man's mistake. 

It was observed in the case of the sheep industry how 
supply and demand regulate prices in the most perfect 
manner immaginable when competition in production is 
free and unrestrained. Indeed, it is self-evident that under 
free competition prices must be forced down to the lowest 
possible level with prices in general. If, in any form of 
production, prices should become relatively high (that is, 
yield a greater profit than do prices in other occupations) 
an immediate increase of supply and fall in prices would 
be the inevitable result. On the other hand, if the prices 
in such business should become relatively low an immedi- 
ate decrease of supply and rise in prices to the general level 
of prices would be the result. As demand increases must 
prices rise; as prices rise must supply increase; as supply 
increases must prices fall. Prices, therefore, must vary as 
supply and demand vary, rising as demand increases or as 
supply decreases, and falling as supply increases or as de- 
mand decreases; and, accordingly, supply and demand must 
maintain prices at their nearest possible relative level, and 
cause the most equitable distribution of wealth attainable. 

What is true of one industry in this respect must be 
true of every industry. If free competition prevails in the 
entire industrial world distribution must be equitable and 
just everywhere. But on the other hand, if competition is 
in some degree restrained in any form of production there 
must be an inequitable and unjust distribution of wealth 
to the exact extent of such restraint in the same ; because, 
with competition restrained, with some being barred from 
engaging in the business, with only a limited number being 
priviledged or enabled to embark therein, supply cannot 
increase to the extent that it would if competition were 
free, prices cannot fall to the relative level with prices in 
industries that are free, those enabled to pursue such form 
of production must obtain more for their labor and capital 
employed than can those in the free industries obtain, and 
distribution must be inequitable and unfair in the exact 



man's mistake. 31 

degree that competition is checked. Conditions that check 
competition anywhere give to some more than to others in 
distribution, and are, therefore, unjust and require to be 
remedied. They are the same in effect as robbery, but are 
worse than robbery inasmuch as their operations cannot 
be avoided, for against them we cannot guard. 

Now, any industry in which competition is checked in 
any measure gives those engaged in it greater profits than 
are obtained in other pursuits, and such industry is called 
a monopoly. A monopoly is a power to obtain something 
for nothing — a power of one industry to rob other indus- 
tries — a system of legalized robbery. 

Free competition in some industries and monopoly in 
others must work grave injustice indeed. A just economic 
system must entirely abolish either all monopoly or all 
competition — the existence of both at the same time must 
make distribution inequitable, demoralize industry, foster 
hard times, produce panics, discourage enterprise, promote 
stagnation, and cause involuntary poverty and crime. If 
monopoly cannot be abolished, then competition must be 
abolished. The government must either permit absolute 
freedom of competition in every form and phase of produc- 
tion, or it must absolutely abolish the same and constitute 
itself a universal monopoly by assuming the absolute con- 
trol and ownership of all industries. And here the question 
arises: 'Can monopoly be abolished, or must the govern- 
ment become a universal monopoly ? ' Those who advocate 
the latter plan are called socialists or nationalists; while 
those who think monopoly can and should be abolished are 
most appropriately designated ' free traders,' using the term 
'.free trade' in its full scientific sense, which includes free 
competition in production everywhere and in every phase, 
and not in importation alone. But to abolish competition 
seems like abolishing the very laws of nature ; while on the 
ether hand, abolishing monopoly seems like carrying out 
nature's provisions and following nature's course. 



32 man's mistake. 

However, let us first see if monopoly really does exist r 
where it exists, and what causes its existence, when it must 
soon become evident as to what the true remedy shall be. 

In labor there is and can be no monopoly, since every 
laborer is a free competitor against all other laborers; and 
it would be folly to suppose that any argument is necessary 
to prove this fact — it is self-evident that in labor there is 
perfect freedom of competition, or absolute free trade. 

Accordingly, if monopoly does exist, it must exist m 
either land or capital, or both. No wealth can be produced 
without land. No labor or capital can be employed with- 
out land. The food we eat, the clothes we wear, the houses 
we live in, all must come from land. Without )and there 
can be no production, no work, no wealth. With scarcity 
of land we must suffer — without it we must die. 

Freedom of competition must prevail in land and cap- 
ital as well as in labor, or labor must be robbed in the *^xact 
degree that such competition is checked in the other two 
factors. With freedom in one factor and monopoly in the 
others, the former will suffer while the latter get more than 
their proper share. The factors that are monopolized mast 
get too much and those that are free must get correspond- 
ingly too little. Monopoly robs the free. 

Let us now see what, if anything, checks the free use 
of land in production; for any restraint upon the free and 
equal opportunities of all to use land is certain to create 
monopoly in land and rob labor. But who denies that there 
is monopoly in land? Who even doubts it? Why, everyone 
knows it. However, let us investigate and see how it is 
caused and how it operates. 

When the first settlers entered Missouri the land had 
no value, although it was as productive as it is now. The 
farmer who conferred a thousand dollar's worth of capital 
and labor upon his land could not sell it for a cent more 
than one thousand dollars. The mi tier who invested ten 
thousand dollars in developing his mine could obtain only 



MAN'S MISTAKE. 33 

that amount for his mine. And so it was with all land— it 
had 110 value, whether improved or not- there was no rent 
But as localities became somewhat populated the land in 
the same began to have value - improved and unimproved 
land aake. And just as population increased did rent or 
these land values, increase, until to-day, when farming land 
is worth from five to fifty dollars an acre, over and above 
the value of improvements, if any; while city lots and even 
mining lands are frequently worth hundreds of thousands 
and sometimes millions of dollars an acre. Yet, rent must 
continue to increase so long as population or industry may 
increase which, under naural conditions, must increase 
forever. When Missouri's population shall be double what 
it is now, its rent must also have doubled -and this great 
state can sustain thirty million more comfortably than it 
now does three million, when its rent would be ten times 
what it is at present. Rent, or the value of land, like the 
value or price of everything else, is regulated by supply 
and demand; the number of people constitutes the demand 
and the amount of land the supply, improvements on land 
are never included in rent. Rent is no greater when the 
land is improved than when it is unimproved. To estimate 
the rent or value of an improved town lot we ascertain the 
selling price of the ground with improvements, and then 
subtract the cost or value of the improvements from it- the 
result being the total or capitalized rent value. And to 
ascertain the price we add the value of the improvements 
to the rent. Of course, by saying that population, or the 
people as a whole, creates rent, we mean industrious people 
or industry; and industry or improvements on any particu- 
lar piece of ground cannot give to such ground any more 
value than it gives to neighboring land or land in general, 
lhus, while it is really industry or labor that produces rent, 
industry can produce it only in a general waj. Every man 
who works produces rent, whether he owns land or not; and 
no man who does not work can by any possibility produce 



34 man's mistake, 

rent. But in no manner can industry create rent in any 
particular area of ground alone — industry must affect all 
surrounding lands in general just as much as that on which 
it is conferred. Improvement values and land values are 
two different things, and only the latter constitute rent. 
The rent of our vacant lands owned by foreign land lords 
increases just as much as does the rent of our improved 
lands owned by Americans. Land owners create no more 
rent per individual than do all other individuals, so that 
much the greater part of the rent is created by those who 
own no land, while less than one-half of the total rent can 
be attributed to the industry of land owners; for, certainly 
the great majority of the people own no land. And this 
is assuming that land owners are as industrious as other 
people, which is not the case, for wealthy land owners can 
and often do live and get rich without working or pursuing 
any legitimate occupation. Yet, while the owners of land 
create much less than one-half the rent, they take all the 
rent. All this is true without exception, and is evident to 
everyone. Neither can there be any question concerning 
the injustice of letting a few take the rent, which is the 
product of all; and the only excuse for doing so is that the 
land owners pay taxes on their land — which excuse would 
be valid and sufficient indeed, if only such taxes which they 
pay to the public be equal to the rent which the public 
oives them; no less can be just; no more can be asked. 

"But the injustice of giving land owners the rent with- 
out an equivalent is not half realized until we observe the 
demoralizing effects that this system has upon enterprise. 
Mr. Smith has long -owned a coal mine worth thousands of 
dollars; yet, he never found it policy to develop the same, 
although during all this time people needed and paid high 
prices for coal, and unemployed laborers were anxious and 
begging for work at the lowest of wages. Under the system 
of giving rent to private individuals (and only to. the few 
who own land) he found it more profitable to leave his 



man's mistake. 35 

mine undeveloped. Finally he concluded to develop 
and work it; but in doing" so he was at once called upon 
to pay a heavy fine, the same to be increased from year 
to year, just as he might increase the mine's capacity 
and yield. Of course, Mr. Smith found no encourage- 
ment in these fines for improving" the mine; but on the 
contrary, in being" permitted to pocket or get the 
benefit of the rent, as well as escaping such taxes by 
leaving" the mine undeveloped, and avoiding the possi- 
ble risks connected with the business, he not only 
finds no inducements for working" the mine at all, but 
does find considerable discouragement. But this is 
not all, for an additional fine is also imposed every 
year on all that his mine might yield. And the fact 
that these fines are called ' taxes ' alters their effects 
no more than would calling" them 'protection.' They 
are fines just the same, and, no matter what they be 
called, Mr. Smith will supply the market with less 
coal than he would if they were not imposed, the 
tendency of which must be to raise the price of coal 
and give fewer laborers employment, or, what is the 
same thing, to cause an unequal distribution of wealth 
in consequence of the increased labor competition and 
corresponding fall in wages. It is clear that the 
effects of this system of taxation must be to retard 
production and deprive labor of employment. It is 
evident that so far as Mr. Smith figures as a producer 
of coal it works directly and only so that the oppor- 
tunities of labor will be less; that there will be less 
competition in the production of coal and more in the 
awful struggle of labor to secure employment; that 
the price of coal will be higher and wages lower; that 
people will obtain less for their labor and pay more for 
what they must buy; that labor is not only robbed by 
rent, but that labor is even barred from the use of land 
and forced into idleness. 



36 man's mistake. 

Suppose Mr. Smith was taxed for neither devel- 
oping" and improving" his mine, nor for what the same 
mig"ht yield him. Would this not be a greater induce- 
ment for him to work the mine than to fine him a few 
hundred or thousand dollars in taxes, as we do now? 
And again, suppose Mr. Smith were obliged to return 
annually to the public all the values that the public 
creates in his mine — the rent — then he could not 
continue to own the mine without utilizing it to the 
fullest extent that the demand for its use requires; that 
is, to such extent which will yield him at least the 
rent, along with a legitimate profit on his labor con- 
ferred and capital invested, which can always be 
done, since rent cannot rise higher than the point at 
which existing conditions of industry will permit the 
same. At present he is permitted to get the benefit 
of or pocket the rent — the product of the public — and 
thus becomes rich by owning the mine without using 
it or giving labor employment; while under the plan 
proposed he would, as he should, find himself obliged 
to utilize it or sell or lease it to those who can and 
desire to do so. 

We see, therefore, that abolishing all taxes upon 
Mr. Smith's industry will remove a burden from his 
industry, and that the acquisition by the public of all 
the rent — what the public creates — would not only 
place him in a position where he must work the mine 
or make terms with those who are anxious to do so, 
but it would do him no injustice, since he parts with 
nothing that he has produced in any sense whatever 
— he only returns to the public what the public has 
created in his land (the rent) which justly belongs to 
the public, and should be taken by the public and 
used for public purposes. 

While under our present system his mine has been 
unused for many years, and is as yet only half used, 



MAN'S MISTAKE. 37 

it is most clearly evident that under the system sug- 
gested the same would have been properly utilized 
from the very beginning, or when there appeared the 
first demand for or value in it, and would have been 
improved and worked more and more from year to 
year, just as such demand or value increased; in which 
case more laborers would have obtained employment, 
and labor competition would have operated down- 
ward and wages upward. 

These are very vital points, and must be properly 
understood and appreciated. They are both clear and 
strong respecting the instance of Mr. Smith just given, 
and seem of trifling significance only when our thoughts 
extend no further than this one instance alone. But 
let us think. Let us attribute the little importance of 
Mr. Smith's industry to the industry of all men. Then 
we will at once see the supreme significance of the 
principle involved. If this plan would force Smith's 
coal mine into the fullest use, give more laborers em- 
ployment, diminish labor competition and tend to raise 
wages accordingly, it would for the same reason force 
every other coal mine, and every mine of any kind 
whatever, into thorough use, and produce the same 
results. And if this plan would affect all the mines 
of the country in this manner, it would affect all agri- 
cultural land and all village and town lots in the same 
manner. It would put the entire earth, wherever this 
system prevailed, into thorough use, and leave no 
natural opportunity, for which prevailing industrial 
conditions give the slighest demand or value, out of 
use. Is it not as manifest as anything can possibly 
be, that, since it would put the earth, or all the land, 
into thorough use, and make the whole world a perfect 
bee-hive of industry and enterprise, it would afford all 
men opportunities to obtain employment at all times 
without jbegging for the same; would reduce labor 



38 man's mistake. 

competition to the very lowest, and raise wages to the 
very highest consistent point; and would, accordingly, 
give to labor all that labor has ever asked, or ever dare 
ask, namely, liberty to use the earth to earn a living. 
All this seems so plain and self-evident that the only 
wonder should be that any arguments are deemed ne- 
cessary to reveal the same. It involves not onty the 
most elementary and fundamental principle of econ- 
omics, but it is so simple and obvious that a child could 
readily perceive it as an axiomatic truth if his mind 
were not perverted by the foolish current doctrines and 
practices of industry, or influenced by partisan preju- 
dices. 

Taxing industry or the products of industry dis- 
courages industry; and permitting private individuals 
who own the land to appropriate or pocket the rent, 
which the public creates, enables and encourages them 
to hold lands unused for purely speculative purposes, 
while labor must suffer not only from a lack of oppor- 
tunities to find employment, but from low wages caused 
by the increased labor competition occasioned thereby. 
On the other hand, leaving all industry and products 
of industry untaxed does not discourage industry; and 
prohibiting the owners of land from appropriating or 
obtaining the benefit of the rent obliges them to thor- 
oughly utilize the land, which will diminish labor com- 
petition by enabling all to obtain employment at all 
times, and in addition raise wages accordingly; thus, 
leaving to individuals what justly belongs to individu- 
als, and to the public what justly belongs to the pub- 
lic, and at the same time doing injustice to nobody — 
and taxing nobody; for the total rent values of all the 
lands of any country will amply pay all possible pub- 
lic expenses of all possible kinds. 

But private appropriation of rent not only makes 
it profitable for landowners to leave their lands un- 



MAN'S MISTAKE. 39 

used, but it enables and makes it profitable for them 
to form land syndicates or combines in order to force 
lands already in use out of use; because by so doing 
they can still further lessen production and raise prices 
accord in gly. Mr. Smith owns his coal mine absolutely 
— just as he owns his clothes that he wears or the 
house that he lives in. This part of the earth is his, 
and no man dare touch or use it without his consent. 
Under our present system he is not obliged to use it or 
let others use it, even though his fellow men may act- 
ually die from lack of opportunities to do so. Over 
this portion of the earth he possesses an absolute mono- 
poly indeed. 

Now, what is true of Mr. Smith's mine is true of 
every other mine, of every farm, of every town or city 
lot, and of every spot of the earth's surface, wherever 
this system prevails. Every landowner has now an 
absolute monopoly over his own land — so far, it is 
self-evident, there is monopoly in land. 

We see that Mr. Smith can absolutely control, 
limit, or stop production in his mine; and the same is 
true of all other owners of coal mining lands. And 
coal mining lands being limited, and Mr. Smith having 
become wealthy from the rent of his lands — the pro- 
duct of his fellowmen — goes to work and buys up all 
the coal mines he can and stops production in them, 
thereby not only raising the price of coal, but in- 
creasing labor competition or the demand for the use 
of the mines, which in turn increases their value or 
rent, of which he alone at present secures the benefit. 
In other words, our laws now operate so that by stop- 
ping production he is benefitted both in higher prices of 
coal and in higher rent, while labor is injured both in 
securing less employment and in obtaining lower 
wages when employment is obtained, because of the 
greater labor competition. 



40 MAN'S MISTAKE. 

The lands of greatest value are always owned by 
wealthy men or corporations, who find it easy to form 
trusts or syndicates for the purpose of limiting pro- 
duction still more effectively. 

Yes, and we all know that to-day the most valu- 
able coal mines are controlled by combines and trusts. 
The same is true of lands from which petroleum and 
many other products are obtained; and it is possible 
and in a measure true of all lands, for all kinds of land 
are limited in extent, and no kinds of land can be pro- 
duced by man. The lands that are most difficult to be 
controlled by combines are agricultural lands, these 
being most widely distributed and of largest extent, 
although of least rental value, for that very reason 
— for the reason that they are less capable of being 
monopolized. 

Thus we see how private appropriation of rent 
permits and has resulted in a monstrous system of 
land monopoly, which not only robs labor, but leaves 
laborers to suffer and even to die, because they cannot 
use their own "dear native land " ? to earn a living! 
We see, then, that there is monopoly in land. We 
have also seen that public appropriation of rent 
would force all lands into thorough use and thus de- 
stroy land monopoly absolutely. 

There cannot be monopoly in labor; but it is 
clearly evident that there is and must be monopoly in 
land under our present land system. Capital, being 
only a form of labor, or labor already exerted, could 
not be monopolized any more than labor itself if labor 
and land were only free to produce it. But since 
labor is largely checked in production by land mono- 
poly, it is made possible for those who own the land 
to monopolize not only the very earth itself, but all 
that the earth brings forth. 

Since capital can be produced only by labor 



MANS MISTAKE. 41 

applied to land, the power to keep land out of use 
must, of course, result in checking or limiting - the pro- 
duction of capital. And since holding- land out of use 
also causes low wages, laborers get only enough to 
make a living, while the land owners and capitalists 
get the balance — that is, accumulated capital goes to 
rent and interest — to landowners and capitalists, who 
constitute only a small portion of the total population. 

Since holding land out of use not only limits the 
production of capital, but concentrates it in the hands 
of a few, it becomes possible for these few to combine 
and form trusts for the purpose of withholding capital 
and money from use and circulation in order to raise 
prices, or the profits of their capital, which is interest. 
Accordingly, the few men of the country who are 
absorbing the mass of the country's wealth have in 
some degree acquired the power of monopolizing some 
of the products of labor, such as petroleum, coal, 
gold, silver, etc., and sometimes even productions so 
widely diffused as the articles of the farms and fac- 
tories. 

However, capitalists can seldom succeed in corner- 
ing the products of labor, even under our present sys- 
tem, without first acquiring the ownership of the lands 
from which they are obtained. The methods they 
must pursue are to first buy up most or all of these 
valuable lands, so that they may be able to regulate 
production in order to regulate prices and rob labor. 
And this is the way it is always done; wherever cap- 
ital is monopolized the land from which the same is 
obtained is monopolized by such capitalists. Mono- 
poly in capital can exist only through monopoly in . 
land, and is, therefore nothing but land monopoly in 
reality. 

Wherever production is unchecked or unlimited 
there exists and can exist no monopoly in capital; and 



4_! MAN'S mistake. 

if the same does exist where production is checked, it 
certainly must instantly cease when production is 
made free. 

Accordingly, let us make monopoly in land an im- 
possibility, and monopoly in capital will be an even 
greater impossibility. Let public appropriation of rent 
be substituted for private appropriation of rent, and 
production will enormously increase; labor competi- 
tion will at once diminish and wag^es rise; wealth will 
be equitably distributed and no long-er concentrated 
in the hands of a few; and the power to monopolize 
capital, or the products of labor, must become an ut- 
ter impossibility, except where the exclusive rig"ht to 
produce an article is given by patent laws to the in- 
ventor of the same, which laws mig-ht perhaps also 
be so modified as to permit no monopoly even there. 

Let us suppose the production of sewing" machines 
to be absolutely free and unchecked. Should capital, 
even when concentrated as it is at present, attempt 
to buy up all the machines in the market to monopolize 
them and raise their prices, their production would 
at once become more profitable than is the production 
of other commodities in g-eneral, and industry would 
immediately turn to the same, and in an exceeding^ 
short time increase the supply to the extent that will 
secure it no greater profit than will other occupations 
secure. And this would gx> on and on just as long - as 
capital mig-ht continue the strug-gle, even until half 
the population should be engaged in the manufacture 
of sewing" machines, if capital could hold out so long. 
And even then, it is evident that under free production 
such an attempt on the part of capital could not de- 
moralize labor even perceptibly, but would waste and 
destroy itself; because it could not deprive labor of 
labor's just reward, since labor will then be free to 
produce the machines all the world over, and will 



MANS MISTAKE. 43 

have thereby only opened up for it increased opportu- 
nities, which must tend to raise wages. On the other 
hand such a struggle could not secure to capital any 
advantage, since the prompt and indefinite increase of 
the production of sewing machines would keep their 
prices down at the level of prices in general. Under 
free production it could not be otherwise, even when 
capital is concentrated, which it could not be under 
the system of public appropriation of rent. Now, 
what is true of sewing machines must be true of all 
the countless commodities produced by labor. It must 
be true even of the precious metals and all other met- 
als. Under free production gold and silver could be 
monopolized only with the greatest difficulty and only 
to a small extent, even when capital is concentrated 
as at present, and not at all when capital shall have 
ceased to be concentrated, as it would cease in less 
than a generation after public appropriation of rent 
shall have been established. 

No, the products of labor can not be monopolized 
if labor is given free access to land — if labor be free 
to produce the same. But land can be monopolized; for 
land is limited in amount, and cannot be produced by 
man— the earth is so large, and no human ingenuity 
can add a square inch to it. There must be monopoly 
in land when the few are permitted to own all the re- 
sources of the earth— all the powers and opportunities 
that enable labor to produce the necessaries of life— 
and the many obliged to depend for existence upon the 
terms that the former can exact for the blessed privi- 
lege of using and living in God's creation. Land is 
limited in extent. Man cannot make it, and cannot 
live without it. Hence, checking labor in the use of 
land must create monopoly in land. If we could pro- 
duce land as we can capital, then monopoly in land 
would be an utter impossibility — it would be as im- 



44 man's mistake. 

possible as is monopoly in capital impossible under 
free production. Land monopoly exists only because 
land is limited and all its powers and opportunities 
are granted by law to only a portion of mankind. If 
the air we breathe, the water we drink, and the sun- 
shine we enjoy were limited, or could be bottled-up 
or appropriated, there would be monopoly in the same 
ii treated as land is treated now; and we should soon 
find people choking- for want of air, thirsting 1 for the 
want of water, and dying- for the want of sunshine. 
Thus it is that the world is full of people to-day who 
drudge in poverty and meet with premature deaths, 
because they are deprived by law of the equal rig-ht to 
use an essential element of nature, the land. 



THE MISTAKE AND THE REMEDY. 



We have now ascertained in this brief space that 
there exists no monopoly in labor, and that monopoly 
in capital can and does exist only as a result of mono- 
poly in land. Our present land system is a huge sys- 
tem of monopoly, from which alone spring- all the 
monopolies that exist in capital. 

There is no mistaking* the fact that free produc- 
tion in all industries will produce the most equitable 
distribution of wealth attainable, that it is monopoly 
alone which causes distribution to be inequitable or 
unfair, and that the remedy therefore must be the ab- 
olition of monopoly. The problem is to abolish this 
system of monopoly; and the remedy is FREEDOM— 
free production— universal free trade— and this can 
be secured only by substituting- public appropriation 
of rent for private appropriation of rent, and abol- 
ishing- all taxes on the products of industry. 

We look about us — and everywhere do we see 
able and honest men and women seeking and begging 
for the privilege to work — for an opportunity to earn 
a living — and yet many of them cannot find the same, 
but are forced to beg or driven to crime and shame. 
Yes, the very curse of God, that man must live by the 
sweat of his brow, has been transformed into a bles- 
sing — how glad men are to obtain opportunities to 
toil and sweat for the privilege of living— living even 
on the brink of despair. As a result of these econo- 
mic conditions we have not only poverty among the 



46 man's mistake. 

masses, but ignorance and immorality among - all. Na- 
ture is not niggardly. This world is a world of oppor- 
tunities to satisfy the wants of man; and to even sup- 
pose that it could be otherwise would seem like blas- 
pheming our Creator. No, the mistake is not in nature. 
It is, as we have already observed, the mistake of man 
— and a stupendous mistake it is indeed. Private ap- 
propriation of rent — the product of general industry 
— is a mistake that no words can describe, no mind 
conceive. It has not only caused generations of misery, 
ignorance, degradation and despair, but has practic- 
ally perverted human nature and moral perceptions. 
It is the mistake of all mistakes — the crime of all 
crimes. 

Yes, we see prosperity and enormous wealth; in- 
ventions, progress, and grandeur; literature, art and 
science; schools colleges, and universities. But who 
get the benefits of these — only the few; for the masses 
there is no hope but the hope of escaping poverty and 
want. There is prosperity for the few, but destitution 
for the many. 

Private appropriation of rent produces monopoly, 
and monopoly, as we have seen, is the curse of the 
earth — the awful nightmare of civilization. But if 
private appropriation of rent produces monopoly, then 
public appropriation of rent must destroy it. This is. 
not only a natural inference, but it has been clearly 
demonstrated that such would be the result. And as 
to the justice of making this change it need only be 
said that it consists of nothing but stopping wrong and 
establishing right in two ways, namely: It is wrong 
to permit a few to keep what is produced by all. 
Therefore, rent should not go into the pockets of land- 
owners, for landowners do not produce it; but it should 
be taken by and used for the public, because it is the 
creation of the public. And on the other hand it is 



MAN'S MISTAKE. 47 

wrong 1 to take from individuals what they do produce, 
and therefore entirely proper to abolish our entire tax 
system. 

The remedy is extremely simple and absolutely just 
to all and unjust to none. It consists of two things, 
namely: 

First, the abolition of all taxes. 

Second, public acquisition of all rents. 

To do the second would involve a comparatively 
small expense and hardly any difficulty whatever, since 
everyone knows the approximate values of any lands 
in his neighborhood — far better than he knows the 
values of the improvements upon them. Rent values 
need not be assessed every year, and quite likely not 
oftener than once in five years, except in cities and 
mining- districts. To do the first would abolish perjury, 
because oaths would not be required, and there could 
be no fraud because nothing - needs be secreted. In- 
equalities of taxation and the shifting of taxes upon 
consumers would be impossible, for there would be no 
taxes to pay; while hundreds of millions of dollars 
would be saved annually to the public, which is now 
paid for levying and collecting taxes, since there 
would be no taxes to levy or collect. 

This simple change would greatly simplify govern- 
ment; for the most perplexing, distressing and corrupt 
feature of government is the taxation feature, which 
would be entirely abolished. And in substituting pub- 
lic for private appropriation of rent, all the corrup- 
tion, fraud, and bribery in conferring land grants and 
franchises would be impossible, for there would be 
none to give. The cost of collecting the land values 
would be merely nominal, and all other laws and regu- 
lations could remain as they are now. At all events, 
the secure and permanent possession of, and the right 
to transfer and inherit land must be maintained just as 



48 MAN'S MISTAKE. 

they are now; and no limit as to the amount of land 
anyone shall be permitted to use should be required. 
Let all select whatever land, and as much land as they 
please, just as they do now. All that should be re- 
quired is that every landowner pay annually to the 
public all that the public creates in his land, namely, 
the rent, or value of the ground, excluding' the im- 
provements. 

What the effect of this change would be has been 
observed. It would set society and industry on a firm 
basis, which would enable everyone to work out his 
own salvation and make an easy and independent 
living"; because all would enjoy equal opportunities r 
and would, therefore, obtain according" to their real 
abilities, industry and enterprise; and no one could 
become rich without acquiring his wealth in a legiti- 
mate or just manner, by his own efforts and industry, 

Further than this the government should not go to 
solve the social problem. Let all men enjoy and be 
protected in their equal rights to the use of the earth 
and to make life happy — that is all. 

The application of this remedy can be very easily 
achieved. The history of social reforms is mainly a 
history of social evolution. Step by step, is the way 
society must advance. It is only in exceptional cases 
that sudden social disturbances or revolutions have 
changed social systems at a blow. The law of human 
progress is evolution — advance by degrees. And thus 
only can and must this great reform be achieved. 
When the time comes when a majority of the people 
shall have learned of this remedy an attempt will be 
made to legislate in this direction. The first measures 
that can be enacted will in no probability be anything 
more than a mere step — the mere initiation of the 
principle. 

The beginning may be made in Congress, or even 



MAN'S MISTAKE. 49 

in a city or county government. But no matter where 
the same shall occur, it is quite manifest that it will be 
only a beginning-. 

If Congress makes the first attempt, the same will 
in all probability be just about what has been done by 
the fifty-third Congress with the income tax — an at- 
tempt to make a small reduction in other taxes and 
raise that amount by the former. The first law Con- 
gress would probably make would be to cut off per- 
haps 25 per cent, of regular taxes and raise that 
amount of revenue by collecting 25 per cent, of the rent 
of all lands that yield rent. If after a few years' trial 
the plan proves advantageous an amendment may be 
made to collect 50 per cent, of all rent, and reduce 
taxes in proportion. Still later all rent would be ab- 
sorbed by the governments (county, city, state and 
national) and all taxes abolished. The same method 
would be pursued by a state, or municipality. 

Of course when all rent is ultimately absorbed by 
the public the same would have to be divided equitably 
between the State and Federal governments. 

This change could do not even apparent injustice 
to anyone, save those who own land, and who consti- 
tute less than half the population. But of these the 
great majority own lands of comparatively small value, 
or have their lands mortgaged for all or nearly all 
that they are worth; and consequently these could not 
be disadvantageous^ affected by the introduction of 
the remedy, while, in the meantime, they would receive 
all the benefits that others obtained. Accordingly, 
the farmers and owners of suburban homes, even when 
their grounds are unincumbered, would not only sus- 
tain no loss but would derive the greatest benefits. 

The only persons who could be imagined to be in- 
jured are those very few who own valuable city and 
mining grounds. And presuming even that these 



50 MAN'S MISTAKE. 

would be losers by the change, one thing" is certain, 
they have been receiving" so much of the wealth which 
society creates that they can now afford to stop living 
upon the labor of their fellowmen — they are now suf- 
ficiently benefited to be enabled to live a long time 
upon what they have already acquired by the industry 
of others, and ought to be obliged to depend upon 
their own enterprise in the future. 

But the truth is that even these few who own the 
great bulk of the earth's most valuable lands would 
not lose much if anything. They are the men who 
know what is going on in economic discussions, and 
will be the first to see that the remedy will be applied, 
when they will at once begin to sell their lands to 
those who stand ready to buy and properly use the 
same — and there will be ample time to sell before the 
change is effected, or even commenced. And on the 
other hand, a moment's reflection will show how that 
taxes on the improvements and other capital invested 
and produced upon thoroughly utilized ground is, on 
the average, equal to what the rent would be under 
the new system — in fact it often approaches the rent 
even now — so that even the owners of valuable lands 
would not lose anything whatever if they will only 
put their lands to thorough use — and they should un- 
der do circumstances be permitted not to do so. No, 
there is no injustice to anyone in making this great 
reform ; the whole affair is merely a matter of equal 
justice to all. 

The man who makes thorough use of his land will 
pay no more in rent than he pays now in taxes of all 
kinds, direct and indirect, while the farmers and 
owners of other lands of little value will pay far less, 
since when all land is brought into thorough use there 
will not be any monopoly in land, and rent, or the 
value of land, must be much lower. 



MAN'S mistake. 51 

But suppose rent to remain as high as it is at pres- 
ent, the owners of farms and improved suburban 
grounds would even then pay less rent than they pay 
now in taxes. Statistics unmistakably prove this. 
Take Missouri for an instance. Two cities of this 
state contain nearly one-third of the entire population 
and nearly one-half the entire rent or land values of 
the state. Taking the rent of these two cities alone 
and the rent or values of the mining lands, and the 
same will amount to far more than half of all the rents 
of the entire state. Hence, we see that St. Louis, 
Kansas City and the mining lands would pay over half 
of all the revenue of the entire state, while now the 
farmers pay the bulk of the taxes. 

Furthermore, the owners of much of the most 
valuable ground in St. Louis and Kansas City live in 
the East or even in Europe, having little or no other 
interests here, and yet escape with mere nominaUaxes, 
such grounds being largely unimproved. At present, 
instead of taxing foreign landlords, we tax our indus- 
trious people who must pay the rent created by their 
own industry to such landlords before they are per- 
mitted to be industrious. 

What is true of Missouri is true of the country in 
general. The injustice of our present tax systems is 
surpassed only by the injustice of private appropria- 
tion of rent. Both must be abolished, and rent must 
go where it belongs, namely, into the public treasuries, 
and then used for public purposes. A simpler and 
more wholesome reform than this would be is not re- 
corded in history. 

This method of raising revenue would increase the 
burdens of nobody, but would diminish the same for 
all — even for the industrious landlords. It would 
create free competition in the use of land, which 
would force all land into thorough use and thus destroy 



52 man's mistake. 

land monopoly, and with it all other monopoly. It 
would make this a world of industry and enterprise, 
afford all employment at all times, reduce labor com- 
petition and raise wages, enable all to make a com- 
fortable and independent living", and make of men 
happier and better beings. 



HOW IT WILL WORK. 



The truth and justice of this remedy and the effica- 
cious results it would produce are only too simple and 
self -apparent for some 'educated' people to readily 
grasp; for so-called educated people, even more than 
so-called uneducated people, find it difficult at times 
to see what stands plainly in view, or to comprehend 
a fact that is not shrouded in mystery — sometimes we 
cannot see a mountain because we are searching for 
a mote. 

But clear and evident as this principle must be to 
every reflecting and unbiased mind, it is, neverthe- 
less, true that in order to clearly perceive and thor- 
oughly comprehend the workings of this system it is 
very important to form somewhat clear and definite 
ideas respecting social and industrial laws. Much oi 
the confusion of thought upon economic subjects is 
due to the fact that we are too much accustomed to re- 
gard current theories and established institutions in- 
stead of our own plain common-sense — we are too 
ready to ignore first and self-evident principles, and 
base our reasonings largely or entirely upon the 
authority of others or the established order of things. 
If we are to acquire real and definite convictions we 
must follow facts, not fashion — truth first, custom 
last. 

Space permits of no further discussion. Neither is 
the same necessary; for it is sufficient to know, what 
is most truly self-evident, indeed, that public appro- 



54 man's mistake. 

priation of rent will and must cause all natural oppor- 
tunities to be thoroughly used — used to the exact 
extent that labor may require, by the natural law of 
labor competition. Labor competition is nothing" but 
competition for the use of land — the natural powers 
to produce wealth — and as this competition increases 
with the growth of population and improvements in 
the methods and means of production, so must the use 
and value of the land increase. And it is equally evi- 
dent that if all natural opportunities be used to the 
full requirments of labor at all times, there must be. 
work enough for all at all times and at the highest 
consistent wages. Public appropriation of rent must 
put the world into thorough use; the thorough utiliza- 
tion of the earth, must afford all employment at all 
times; giving all employment must reduce labor com- 
petition to a minimum; reducing labor competition to 
a minimum must raise wages to a maximum; raising- 
wages to a maximum must cause the distribution of 
the world's production of wealth to be equitable; and 
equitable distribution must give sufficient wealth to 
all and underserved wealth to none, give the hardest 
workers the finest homes and greatest riches, afford 
all equal chances to prosperity and fame, place all 
mankind on a general equality socially and eventually 
obliterate sects and classes, produce a real brother- 
hood of man, make all happy, and put an end to 
crime. Equality of rights to the use and enjoyment 
of nature's bounties must be the first and chief object 
of government to secure ; yet, this is the one great 
thing government does not do ; and the results are. 
what we see them to be — poverty, crime and shame. 

We need not trouble ourselves about what the 
prices of iron, lead, wheat, wool or rice may be; how 
the currency will effect this or that industry; or what 
would become of certain occupations or established 



MAN'S MISTAKE. 55 

institutions. It is enough to know that all men will- 
be equal in fact as well as in theory, and that all men 
will have full and free opportunities to develop all 
their faculties and apply all their mental and physical 
powers. It does not matter if the poor shall become 
as rich as the rich, or the low as high as the high — it 
is all the better so. It is better to have all men rich 
than to have only a few rich, and to have all men cul- 
tured than to have only a few whom circumstances 
may lead to eminence. The greatest curse of mankind 
is inequality; the greatest blessing is equality. Let 
us establish equality of rights in the use of nature and. 
the enjoyment of the advantages afforded by the gen- 
eral improvements and progress of society, and we 
shall have little to fear from any possible emergency.. 
The enormous increase of wealth that the world, 
would then produce would be equitably distributed, no 
matter what wages or the prices of goods might be in 
dollars and cents; for certain it is that when labor 
shall obtain all that it produces, and nothing can be 
taken by monopoly, capitalists can secure no more, 
than the value of their capital — in addition to what 
they receive for their own labor— and distribution 
must be just and fair. And this being true, it is mani- 
fest that even with only the wealth at present pro- 
duced the average laborer would not need to work 
more than three to four hours a day in order to make 
a comfortable living — and labor would then be re- 
spected, for laborers would then be the wealthiest 
people and would constitute the 'nobility,' if such a 
thing could then exist. Even now there is wealth 
enough for all; but while some have millions others 
have mites. We have over-production now, because 
labor is robbed, leaving the masses with barely enough 
to sustain life and health, and with little or nothing 
to purchase the enormous accumulations of the few.. 



56 MAN'S MISTAKE. 

With employment and fair wages secured by labor the 
masses will soon have acquired the means to satisfy 
their universal desire to purchase or secure all that 
industry can produce, and over-production will be 
impossible. 

There never can be over-production when all are 
enabled to obtain work and secure the full value of 
their labor. When wealth is equitably distributed 
such a thing- as over-production must be an utter 
impossibility ; for there is practically no limit to the 
amount that people can and will consume. Let pro- 
duction be increased twenty-fold, and under free com- 
petition the people will and must have obtained the 
means to secure and the desire to consume all. One 
hundred dollars a year may supply a man with clothing; 
but a thousand dollars will do the same more satisfac- 
torily. A family can live in a one thousand dollar 
house ; but a million dollar mansion would be far more 
desirable. One teacher can instruct fifty pupils ; but 
one teacher or fifty teachers for each pupil would be 
far better. And so it goes. Under our present sys- 
tem we have over-production ; and yet, people are in 
great want and distress. With public appropriation 
of rent production may increase indefinitely, but 
there can never be over-production; for people will 
then have the means to buy all that can be produced. 
People would then secure all they might produce, and 
they would not produce what they would not want. 
At present the few get most of what the many produce, 
and the former must hoard what latter cannot buy. 

One cry of labor to-day is that labor-saving ma- 
chinery injures labor — that every improvement in the 
methods of production is a curse to the masses. And 
it not only seems so, but on the whole it is so — it is 
so decause our stupid industrial system makes it so, 
At present improvements and inventions do injure 



MAN'S MISTAKE. 57 

labor, and if the same could be brought to a degree of 
perfection which required no labor, laborers would 
be forced to steal or starve. But this is so only because 
nature has been made private propertv — because mo- 
nopoly gets what society creates, and at the same time 
bars labor from the use of the earth, the gift to all. 
Abolish this system by establishing public appropria : 
tion of rent, and all the benefits of labor-saving in- 
ventions must and can only go to labor— to those who 
use or apply the same. Establishing justice will be 
certain to convert this curse into a blessing-. 



INEQUALITY OF TAXATION. 



It is easy to see the great injustice of our present 
tax system ; but it is impossible to imagine any tax 
system that is just. It is an undisputed law of taxa- 
tion that taxes affect prices. And what does this 
mean ? It must and can only mean that the taxes are 
in fact paid by the last buyers of the things that are 
taxed. When the United States government taxed 
matches the prices of the same were high ; and when 
this tax was abolished the prices immediately became 
low. When sugar was taxed by the tariff laws it cost 
ten cents a pound ; when the tariff was abolished on 
the same it cost five cents a pound. 

It matters not what kind of tax it be; every tax 
must raise the price of the thing taxed, and the entire 
burden of this increased price must and can fall only 
upon the last buyer — the consumer. The man who 
first pays the tax is thereby put to that amount of ad- 
ditional expense in producing the article taxed and 
putting it on the market, and must, therefore, raise 
the price accordingly, if he is to receive his legitimate 
reward for his industry, which he would otherwise find 
profitable to abandon. He raises the price not only 
the amount of the tax, but adds a profit on this extra 



MAN'S MISTAKE. 59 

expense. The man who buys and again sells this arti- 
cle must also make a legitimate profit or abandon the 
business; and hence, he also adds to the price not only 
the amount of the tax, but two profits — one on the tax 
and the other on the first profit. The next man who 
buys and again sells it adds three profits in addition to 
the original tax — one on the tax, one on the first 
profit, and another on the second profit. And the 
man who buys and sells it the third time adds four 
profits, and so on. But the man who buys it the last 
time — who buys it to keep, or to consume — can get 
back neither tax nor the several profits — he must pay 
it all and bear the entire burden. It is clear that the 
consumer pays the tax, along with the several profits 
accumulated on account of it. 

What is true of one commodity is and must be un- 
iversally true — the exceptions are not worth men- 
tioning. This is the manifest, acknowledged, and 
universally admitted law of taxation — that the con- 
sumers must bear the burdens of all taxes. But this 
is not all. Every tax impedes production, and must 
tend to produce monopoly. And in cases of very high 
taxes, such as protective tariff taxes, the very object 
of which is to advance prices, by barring out competi- 
tion — or, in other words, to create monopoly — the 
consumers find themselves charged with a proportion- 
ately large monopoly advance in price, in addition to 
the advance of the tax itself, with all the accumulated 
profits upon both. All these items taken together 
must and do cause not only a very material increase 
in price, but in instances of high taxes make prices 
almost fabulous. Thus we see how burdensome such 
taxes become; how they fall entirely upon consumers; 
and how stupid and unjust they are. 

This being true, and most manifestly true, what is 
the sense of taxing men for their industry? Why not tax 



60 man's mistake. 

consumers directly, since they must by this system 
bear the burdens of not only the taxes with their ac- 
cumulated profits, but of monopoly. Is it not prepos- 
terously absurd to endeavor to equitably distribute 
the burdens of taxation by such a system, when it is 
known in advance that the consumers must bear the 
burdens? Is it not absurd — nay, a crime — to levy 
su.ch taxes at all? 

Of all taxes, the least unjust is the incpme tax; 
but even this is wrong"; for it takes from men the re- 
sults of their own enterprise, and at the same time dis- 
courages enterprise, and must so far tend to increase 
labor competition and reduce wages. All taxes are 
unjust, not to mention all the perjury, fraud, corrup- 
tion and expense connected therewith. Let the public 
take what the public creates — the rent — and no taxes 
w T ill be needed, no injustice done, and no burdens im- 
posed. 

The worst taxes are protective tariff taxes. These 
are imposed for the ostensible purpose of raising prices, 
thereby largely increasing the profits of a few and the 
burdens of many. In all essential respects protective 
tariffs work precisely like all other taxes — they fall 
upon consumers, discourage industry, and impede 
enterprise, not to mention the frauds and enormous 
expense in collecting the same, and the horrible cor- 
ruption funds sent to Congress whenever a tariff law 
is to be altered, abolishsd or enacted. They do not 
create industry, but lessen industry, in attempting to 
divert industry from more remunerative to less remun- 
erative occupations. How in the name of common- 
sense can an in itself burdensome tax make profitable 
an industry that is not profitable under natural condi- 
tions? It is the very height of stupidity to suppose 
the same. If we can secure goods cheaper by importa- 
tion than by producing them here it is well; if we 



MAN'S MISTAKE. 61 

could secure them by importation for a mere trifle it 
would be better; and if we could secure them in this, 
manner for nothing- it would be best of all. The 
cheaper we can obtain what we want, the better it is 
— it makes no difference whether we produce the 
same here, or whether we exchange for it something- 
else that we produce here. ■ Free importation could not 
injure us; for nothing can be imported except what we 
take in exchange for our own production, and by so 
doing we only obtain more for a given amount of labor 
than we could otherwise obtain. The idea that free im- 
portation could cripple or injure our industries is most 
preposterously absurd and ridiculous — there is utter- 
ly no sense in it ; it is the merest folly. Taxing trade 
or industry must lessen industry r and making industry^ 
free must enlarge it, no matter in what department or 
phase. 

The idea that a nation can exchange home produc- 
tions with foreigners without taking the equivalent in 
foreign productions is a great delusion. And it is well 
that the same is a delusion. If we as a nation should, 
in exporting our goods, receive nothing but money for 
the same we would be at a sad disadvantage, indeed; 
for money is of utterly no use to us except as a me- 
dium of exchange — the medium that makes exchanges 
rapid and easy — and if we were obliged to part every 
year with hundreds of millions of dollars worth of our 
labor for the mere purpose of facilitating exchange,, 
obtaining therefor nothing to satisfy our personal 
wants and provide for our comforts, we would be in a 
lamentable quandary, indeed. We cannot eat money,-; 
we cannot clothe ourselves with it; and we cannot use 
it for shelter or any other purpose. Of course we can 
'buy' things with it. But we must buy things pro- 
duced either at home or abroad. If we buy home 
products with t-he money obtained for our exports, we 



32 MAN'S MISTAKE. 

as a nation, have still nothing* but money for our labor 
that we exchanged for it. The money merely circu- 
lates, or passes from hand to hand, but as a nation 
we obtain no tvealth thereby. The only way we, as a 
nation, can secure wealth with this money is to buy it 
abroad. And if we buy it abroad the money must again 
return abroad; so that the whole matter amounts to 
nothing, after all, but an exchange of our goods for 
an equivalent amount of foreign goods. Exchanges 
are and must be equal on the average, no matter if 
they take place between persons of different nations 
or between persons of the same nation — money being 
nothing but the medium through which exchanges are 
made. 

We cannot export more wealth than we import, 
unless we have debts to pay abroad, or presents to 
give our foreign friends; and in such event toe must be 
the losers of the entire difference between our imports 
and exports. If, on the other hand, we import more 
than we export, it can be so only because foreigners 
have debts to pay or gifts to present to Americans, in 
which case we must be the gainers of the difference or 
'balance of trade.' That nation is more benefitted by 
trade which imports more than it exports, other things 
being equal. The delusion that the opposite can be 
true is transcendent ignorance, a survival of the past, 
and lives only by the erroneous assumption that newly 
developed countries, whose exports usual] y exceed the 
imports, are most prosperous. But newly developed 
countries are least prosperous on the whole. They pro- 
duce less wealth per capita than older communities, 
other things being equal; and what makes them seem 
more prosperous is the fact that monopoly is less 
prevalent, because the natural opportunities are rela- 
tively more abundant and easier of access, which pro- 
duces a more equitable distribution, lessens concen- 



MAN'S mistake. 



63 



Oration, and enables all to make a comfortable livino- 
—because it enables fewer to make fortunes off the 
industry of others. The reason why the exports of 
new countries generally exceed their imports is that 
such countries have more rent to pay to foreign land- 
lords and extend more aid gratuitously to foreign rela- 
tives and friends — there is no other reason. Yet, it is 
true that in new communities, with production 'rela- 
tively less than in older communities, the masses are 
really more prosperous, and the fact that they export 
more than they import rather only proves this But 
it does not follow that therefore an excess of exports 
over imports makes prosperity or is a gain— it is a 
total loss. 

It is not money, but wealth, that we all really 
desire. We want money only because we can obtain 
wealth with it. And if we can secure only money for 
our exports, and are to secure no wealth from abroad 
with it, we are in every sense the losers of all that 
we gave for the same -as much so as if we had cast 
our goods into the sea — for there is nothing needful 
returned, since we do not need to waste our labor in 
order to secure or maintain a sufficient volume of the 
currency. We do not depend upon the foreign world 
for our currency. We have more than our share of the 
world's gold and silver, and everything else that is re- 
quired for a circulating medium. An absurd delusion 
indeed, is the notion that an excess of exports over 
imports is to our advantage. The very idea that such 
a thing could be possible is ridiculous in the extreme 
What we should seek is to ^et more than we give, and 
not to give more than we get, unless it behooves us to 
be charitable with our foreign brothers. 

Another most stupid and mischievous tax is the 
license tax. Taxing men for the occupations they 
pursue does great harm — it discourages some and in 



64 man's mistake. 

effect prohibits many from entering the same, and so 
far must foster monopoly. Our liquor license system 
is a gigantic crime — and that too from every stand- 
point of view. It effectually prohibits the masses of 
the people from engaging in the largest industry in 
the country — for the masses are too poor to pay a 
license of hundreds of dollars. This puts the enor- 
mous liquor industry in the hands of the more wealthy 
elements, makes respectable the most evil-producing 
occupation of mankind, makes drinking popular, en- 
courages drunkenness and vice, and creates one of the 
greatest systems of monopoly in existence. Drinking 
liquor either is or is not a crime. If it is, then the 
liquor traffic is a crime ; if it is not, then the liquor 
traffic is not a crime. If the liquor traffic is a crime 
it should be abolished, root and branch; if not it should 
be let alone. I can see no crime in moderate drinking, 
although I believe it is better not to drink intoxicants 
at all. And if it is no crime to drink liquor it can be 
no crime to manufacture or sell it. Hence, in my 
opinion, the liquor business should be made free. Let 
every person who so desires make or sell liquor free 
and unmolested. Let liquor be sold in every grocery, 
bakery, store and shop. Let it be peddled from door 
to door. It is the best solution of the liquor problem 
— and it is the easiest. It will make whiskey so cheap 
that 'the rich would not buy it,' and make drink so 
unpopular that 'the poor would not drink it.' Abol- 
ish all taxes on liquor, and the liquor problem is solved. 
Abolish all other taxes, and the entire tax problem is 
solved. Establish public appropriation of rent, and 
the social problem is solved. 

And the social evolution must come to this, or it 
must come to socialism or something worse. The 
spirit of reform is abroad; come what must, but some- 
thing must come. The toiling masses have begun to 



MAN'S MISTAKE. 65 

think; they are seeking a remedy; the clans are gath- 
ering; ideas are forming and crystalizing; gradually 
but surely some definite line of action will be followed, 
and duty calls upon every true citizen to extend all 
the aid in his power towards giving proper direction 
to this line. To ward off possible evils or approach- 
ing calamities that might occur through popular igno- 
rance, plutocratic provocation, or blind leadership, is 
what should most concern the true patriot now. Some 
great change is certain to come. Let us do all we can 
to make the change a just one. 

There are two opposite trends of ideas among the 
reform elements; one toward freedom, and the other 
toward restriction of freedom; one seeks to ultimately 
have government operate'and control all industries, 
and the other is to make all industries absolute!' free 
and have no governmental interference in the same 
whatever; the one is socialism, and the other is real free 
trade. It seems clear to me that ultimately the choice 
must be between these two ideas — socialism or free- 
dom. As for me, I do not believe in socialism. I 
believe in the opposite plan— in LIBERTY. I believe 
that the greatest curse of society is the fact that we 
have too much socialism now, and that the real prob- 
lem is how to abolish what we already have. While 
universal socialism would probably be an improvement 
upon one-sided socialism, as we have at present, it is 
not the true remedy. However, socialists can and will 
consistently join us in establishing public appropria- 
tion of rent,' for rent is public wealth, and they dare 
not oppose a measure that demands public appropria- 
tion of what the public creates, when they advocate 
public appropriation of all wealth. But beyond this 
step we would have to expect the greatest opposition 
to universal industrial freedom, or free trade, from 
the socialists; for they are seeking to make the gov- 



66 MAN'S MISTAKE. 

eminent a universal monopoly, while we are seeking - to 
destroy all monopoly. But most fortunately we shall 
have no further step to take after they have assisted 
us in esta.blishing public appropriation of rent; for our 
object will then have been wholely accomplished — we 
shall then have nothing- to do but to oppose, if need 
be, every attempt at socialism. However, if public 
appropriation of rent should then prove wanting - , no 
injury will have been done their cause; and if it proves 
successful they will no longer desire their scheme, and 
socialism will be dead. But unless this plan is adopted 
nothing - can prevent the ultimate materialization of 
socialism. Friends of liberty may be aware of this. 
The outcome will be socialism or something - worse, un- 
less justice intervenes. True conservatism and intel- 
ligent opposition to the socialistic scheme demands 
hasty action in setting - thing's aright. To blindly de- 
nounce and ridicule socialists will only help their 
cause. If we would abolish socialism, allay discon- 
tent, instill patriotism, and* ward off possible anarch- 
istic outrages, we must seek to do justice — to remove 
the cause that gives rise to threatening evils. Let the 
brave join the ranks and fight the great battle of 
peace. 

The path to victory is the ballot, a political party 
is the instrument, and now is the time. For over 
thirty years the federal government was continuously 
controlled by one political party, and the country has 
become the land of monopoly and the home of the poor. 
During all those years the democratic party denounced 
and charged all existing evils to the party in power, 
and promised to do great things if the democracy were 
given a chance. But the democracy received no chance 
until she was bold enough to declare protection a 
fraud and promised to abolish the same. Then she 
gained a sweeping victory — but only to break her 



man's mistake. 07 

promise, and meet with a duly deserved and crushing" 
defeat. Two years ago the party that stood for pro- 
tection was routed and demoralized. To-day the 
party that promised but failed to abolish protection is 
practically dead. There is but one hope left for the 
democratic party, namely, to adopt Jeffersonian prin- 
ciples, rid itself of the plutocratic gang that has been 
permitted to control it and direct its actions, and 
take a bold stand for complete and genuine reform. 
Will the democracy do this? If not, then a new party 
will fill her place. 

The immediate future must determine this. The 
thinking elements cannot be held in party lines much 
longer ; they are gradually but surely closing the 
ranks, and will at no distant day stand shoulder to 
shoulder in defense of truth and justice instead of par- 
ties and party fanaticism. With free trade as our 
platform we can compel the democratic party to carry 
our banner to victory or be swept from the field by 
the very forces that now constitute her strength. And 
it seems that this must happen — that the coming 
contest must be between industrial freedom and 
industrial restriction, between equity and monopoly, 
between justice and robbery, between progress and 
stagnation — it matters not what the platforms of the 
parties may be. If both of the old parties should 
ignore or endeavor to ignore this question the pro- 
gressive elements will desert them quickly and hasten 
to unite in any movement that shall afford an oppor- 
tunity for real progress. Such action, or inaction, on 
the part of the old parties is just what will give to 
a new party movement an impetus that is certain to 
carry it on to easy victory; the time has come when 
some party must stand for industrial freedom, when 
something that amounts to something must be done 
for the desperate and helpless millions who cannot 



68 man's mistake. 

secure employment, even by begging and pleading for 
the same, and who get only enough to make a wretched 
living when kind providence permits them to earn 
the same by all the hardships involved. 

Party fanaticism and prejudices are rapidly dying 
out, and people are beginning to consider principles 
without regard to parties. They have learned that 
parties are merely machines with which to attain their 
objects, and that it is policy to vote with whatever 
party that holds out fair hopes and is pledged to prin- 
ciples tending toward their views. There is and can 
be no such thing as a good party or a bad party. 
Parties only stand for certain principles — unless they 
are mere organizations of office-seekers and their 
beneficiaries. There is utterly no need of parties ex- 
cept for the establishment and maintenance of princi- 
ples. The time has come when people are beginning 
to see this and stand ready to vote with any party 
having reasonable chances of success, if the same 
represents their side of political issues. Hence the 
breaking loose from the old parties is becoming easier 
every year, and is certain to develop into a formidable 
third party organization at no distant day, if neither 
of the old parties takes up the cause of genuine and 
wholesome reform. 

The blind conservatism that has so long charac- 
terized the old parties — which amounts to ultra radi- 
calism against reform — must give way to progressive 
ideas. The people are tired and sick of it, and demand 
a wholesome change. The fear of old party friends 
that a liberal step forward would scare people is 
founded partly on ignorance and partly on inherited 
indisposition. The people are not the fools that these 
kinds of statesmen imagine them to be. If either of 
the old party leaders were to come out boldly for real 
reform nothing on earth could prevent their part} T 



69 

from achieving a most sweeping victory. Reform is 
easy if the leaders will only lead, but difficult if they 
will run; their courage will encourage those who fol- 
low them, while their cowardice will dishearten their 
followers. But the continued cowardice of politicians 
has taught people to follow less and think more; and 
the time when the masses will trust to no leaders is 
near at hand. Then there is hope. Then we shall 
have government by the people in fact, as well as in 
theory. Then truth will be in the ascendency, and 
justice will prevail. 



THE RAILKOADS. 



With the taxation question settled, and public ap- 
propriation of rent established, other problems may 
be in order, and will be more easily disposed of. 

One of the great proplems of the country is the 
railroad problem, to which a passing notice may be 
given. I do not believe that the government should 
engage in any form of industry — not even the industry 
of railroading. But I do believe that the land belongs 
to the people — to all the people — and that all values 
which the public creates in the same should go to and 
be used for the public. When this is done ground will 
have no selling value over and above what the im- 
provements are worth. 

The grounds occupied by railroads afford enormous 
advantages and enable industry to make enormous 
fortunes in conveying or transporting commodities 
over them. They are exceedingly valuable, and when 
these values find their way into the public coffers the 
selling values of the road-beds will have disappeared. 
Then the government should purchase the improve- 
ments or tracks upon these grounds or road-beds, 
along with the station-houses and depots, and keep 
them in repair, and charge toll from all companies or 



MAN'S MISTAKE. 71 

persons who desire to run trains over the same— these 
tolls to be just hig-h enough to insure sufficient revenue 
to the government to pay all expenses for keeping- the 
roads in proper condition. The telegraphs and tele- 
phones should also be secured and operated by the 
government. 

In this way the government will have nothing- to 
do with the railroad business except to give out the 
contracts to the lowest bidders for placing and keep- 
ing the roads and depots in safe and proper repair, 
charging tolls for trains, fixing the time-schedules for 
departure and arrival of trains, and operating the 
telegraphs. This would be simple enough, and could 
easily be done by the government, as it would leave 
all carrying of goods, conducting train services, fixing 
freight and transportation rates, manufacture and 
equipment of cars and engines, etc., in the hands of 
private enterprise. The government would permit all 
to run engines and trains on any road for any distance 
at the very lowest possible charge. 

This would afford absolute freedom of competition 
on every mile of railroad track. Everyone who could 
secure an engine could, if he desired, carry his own 
produce from Maine to California, or from the Dakotas 
to Florida. And this perfect freedom of competition 
to transport and exchange goods would bring rates 
down to the very lowest profitable point. Any attempt 
to keep rates up would be immediately foiled by the 
increase of competition that would be sure to follow 
on account of the greater profits afforded, which would 
force the rates down to their proper level. 

At present every railroad is an absolute monopoly 
so far as its now line is concerned ;since only a single 
corporation has the priviledge of using the same. 
The plan here suggested would allow millions of cor- 
porations .or individuals to use the same at mere nomi- 



72 MAN'S MISTAKE. 

nal rates, and would thus absolutely destroy monopoly 
in railroading, which is all that is needed or desirable. 
After the ground values of the roads are taken by 
the public, which creates the same, their purchase 
value will consist of only the value of the tracks and 
other improvements, which the government can easily 
enough secure by degrees. And if corporations insist 
upon unreasonable prices the government can and 
should construct competing lines. 



THE CURRENCY. 



The money question is not only interesting- and im- 
portant, but is being extensively discussed. The many 
various and conflicting views entertained show how 
little it is understood, and how valuable a true, definite 
comprehension of the same on the part of the people 
would be. The confusion upon this subject arises 
mainly from the fact that people differ in the meaning 
they attach to the term 'money,' or from the fact that 
they partially or wholly disregard the real or essential 
object of money, 

When money first came into use it consisted of 
certain products of labor which could be most easily 
transported and preserved, so as to make exchanges 
easy and safe. The precious metals, of course, pos- 
sessed these qualities of mobility and preservation in 
a greater degree than any other commodities, and, by 
tacit consent, gradually took the place of other and 
more awkward goods. The only idea then attached 
to money was that it consisted of wealth used for suc- 
cessive and continued exchanges for the mere purpose 
of facilitating the exchanges of other forms of wealth. 
Exchangeable wealth was the money of the past. 

But when credits became customary a new kind of 
money was established. A man would write out a 
note promising to pay a certain amount of wealth, and 



74 MAN'S MISTAKE. 

this note could be transferred — one, two, twenty or a 
thousand times — for wealth among- people who had 
confidence that the giver of the note would pay the 
amount of wealth stipulated. Such a note would serve 
every purpose of facilitating exchanges if people were 
certain that the same would be fully and duly paid. 
This is credit money — the money of the future. 

» At present we have two, and only two, kinds of 
money. One is exchangeable wealth, or government 
coins of gold, silver, nickel and copper; the other is 
credits, or corporation and government notes and 
certificates, etc. Our national bank notes and gov- 
ernment notes and gold and silver certificates are all 
credits. Bonds are also credits and would serve every 
purpose of money if they were freely exchanged or 
intended and adapted for the same. In fact our gov- 
ernment bonds do afford a circulating medium, though 
in a round-about way, in our national bank notes, the 
most satisfactory money in circulation. The choice in 
the money question is between exchangeable wealth 
and credits; between coin money and credit money; 
between barbaric money and civilized money. 

As civilization advances, a better system of money 
than the old becomes most indispensible, and the choice 
must ultimately be for the credit system. The use 
of coins for money must gradually grow in disfavor, 
and will, at no distant day, be practically abandoned. 

But a still greater problem presents itself — the 
problem of which is the best system of credit money. 
Shall it be government legal-tender notes, or another 
system? This is one of the two great problems in 
the money question, and only when it is properly 
solved will the coinage system be abandoned. 

The reason why metals or other forms of wealth 
are unsatisfactory for money is that they are incon- 
venient and fluctuate in value, besides affording not a 



MAN'S MISTAKE. 75 

single advantage over credit money, and at the same 
time depriving mankind of many advantages that 
their use in manufactures and the arts would afford. 
The real injustice, however, in the use of the precious 
metals as money lies in the fact that they are practic- 
ally the only products of labor that are in a large de- 
gree limited in productive increase, and, therefore, 
enable the great capitalists to combine in hoarding 
up or cornering enough of the currency to make it 
scarce and increase its value. This done they again 
put it on the market at these increased values*and 
rob industry of an enormous amount of wealth. So 
long as precious metals are used as money civilized 
society is certain to be continuously robbed, especially 
if wealth continues to be concentrated. 

But even if no special money interests should exist 
the metals would be undesirable on account of their 
fluctuating capabilities; for any money that varies in 
value must work injustice; and it is a gross delusion 
to suppose that the precious metals vary in value less 
than other commodities. They do vary in value con- 
stantly, and the only reason why we seem unconscious 
of the fact is that we are accustomed to compare the 
values of all other commodities with them, assuming, 
unreasonably so, that all variations are on the part of 
the things compared. Of late there has occurred a 
wide variation between silver and gold; but it does 
not necessarily follow that gold remained stationary 
in value, while silver dropped, any more than that 
silver remained stationary, while gold went up. The 
truth is that gold has been cornered and silver left on 
the market, and that gold went up as well as silver 
went down. 

Now, in ascertaining the best system of money the 
first, thing in order is to ascertain what the standard 
of value shall be. Money is of no use to society, save 



70 MANS MISTAKE. 

as a measure, as well as a guarantee, of value. And 
there can be no measure of value or anything - else save 
by the selection of a certain definite standard. In the 
measure of extension the yard is the standard; feet 
and inches are fractional parts, and rods and miles are 
multiples of it. Just so must we have a standard in 
measuring" values. The standard of value is called 
'dollar,' and, like the yard, should be an absolutely 
ascertainable and unvariable quantity. But this it is 
not, and it is impossible to make it so. The best that 
can be done is to approximate the same. Our present 
standard of value is a certain weight of gold of a 
certain fineness — a very poor standard, indeed; for the 
same must vary with every variation in the market 
value of gold, which is as much subject to variation as 
are most other commodities, and more so than is silver, 
because the world has less of it and its possibilities of 
monoply are correspondingly greater. No one metal 
or other form of wealth can possibly constitute a good 
standard of value; and the idea that two metals can 
be circulated successfully as money with the standard 
based on only one of them is most unreasonable, not 
to say absurd. No matter what the law may designate 
as the standard, custom will adopt another if such a 
foolish thing is persisted in. The law says that a cer- 
tain weight of gold is the unit or standard of value, 
and that a certain weight of silver is also the stan- 
dard. This is simply absurd. It simply establishes 
two standards, and custom must adopt the one or the 
other — whichever conditions and policy may deter- 
mine. 

The intrinsic value of the present silver dollar is 
only a little over half the value of the standard or 
gold dollar. If the two are to circulate equally in 
exchanges silver must evidently become more profit- 
able than gold as a circulating medium, and more sil- 



MANS MISTAKE. 77 

ver will be placed upon the mints, while gold will be 
withheld. If the mints turn out as much purchase 
power with 60 cents worth of silver as they will with 
100 cents worth of gold it is most evident that the 
possessors of silver will rush to the mints with their 
silver, and that the possessors of gold will be indiffer- 
ent or refrain from doing so. And as silver increases 
and gold decreases in circulation, so must the tendency 
be more and more toward the adoption of the silver 
dollar as the standard; and when this point is reached 
silver will now freely and gold will disappear from 
circulation. The only reason why this result has not 
been brought about is because silver coinage was 
limited. But even under such regulations the ten- 
dency has been towards the adoption by custom of 
silver as the standard instead of gold. It is because 
this point has almost been approached that our finan- 
cial troubles have occurred, and are likely to continue 
for some time. 

If gold and silver are to circulate together success- 
fully the standard of value must be based upon the 
two metals — it must be an equal value of each. This 
would not only keep them more nearly at par, but it 
would make a better standard, because such a stan- 
dard would be less liable to fluctuate, since if one 
metal might rise the other would be as likely to fall; 
and if one falls as much as the other rises the standard 
will not be affected at all. But a far better standard 
still would be one based upon a larger number of the 
more widely diffused metals, and perhaps also of other 
commodities. This is easily done. Let the law name 
the commodities and determine the fineness and weight 
of each that is to constitute a part of the standard — 
an equal value of each being taken. It is not neces- 
sary that they should be all combined in one coin or 
coined at- all. Let all coinage of metals be abandoned 



78 

and a proper system of credit money adopted, based 
upon such a standard. All that is required is a deter- 
minate amount and fineness of each of the selected 
commodities, when the exact value of the standard 
can at all times be definitely ascertained. 

One objection that may be urged against a mixed 
standard is that it is difficult to compare its value 
with that of other commodities. But this is not true. 
It is as easy to compare the value of any commodity 
with the value of nickel, platinum, or any other form 
of wealth, as it is to compare the same with the value 
of gold or silver. The only difference is that it requires 
several comparisons between two commodities instead 
of only one — one for each commodity upon which the 
standard is based — from which the exact value can be 
determined. The latter is no more difficult than the 
former; it only requires a little more calculation, and 
this cannot be an objection of any serious significance. 
Besides, after the public shall have become familiar 
with and accustomed to such a standard. the value of 
the same will be estimated just as that of any single 
form of wealth, since the compound of the several 
forms composing it will be so well and universally 
understood that it will be regarded as a single com- 
modity or form of wealth, just as is done with the 
countless familiar compounds found upon the markets 
everywhere. 

This would secure a standard of value that would 
fluctuate less than any other obtainable; for, while 
some commodities upon which it is based might rise in 
value others would in all probability fall, since it is 
not probable, or even possible, that all could rise or 
fall at the same time. Thus, there might be much 
fluctuation in such commodities without affecting the 
standard materially or at all. And then, with a proper 
system of credit money based upon such a standard 



MAN'S MISTAKE. 79 

the currency question would be settled. 

After a proper standard is selected, the remaining 
problem will be to determine the best system of credits. 
And I believe that if we were not accustomed to our 
present money system, and were to entertain no pre- 
conceived notions upon the money question, this would 
be a reasonably easy and simple task. 

Credits of private individuals or corporatoins are 
not available as universal money, unless the govern- 
ment guarantees their payment. But how can the 
government guarantee the payment of anything unless 
the government really owns wealth enough to actually 
pay it, in case of necessity. No system of credits can 
serve as a desirable medium of exchange unless it is 
government credit. But government credits are 
worthless unless the government possesses the ability 
to actually pay every dollar put in circulation. 

This can be done only in a manner similar to that 
by which our national bank notes are placed in circu- 
lation. Our national bank notes are substantially 
government notes given for gold loaned to the govern- 
ment. They are nominally bank notes, because the 
banks issue them, but they are really government 
notes, because the government provides for their issu- 
ance and guarantees their payment— on account of 
value received by the government. 

Now, if the government can authorize banks to 
issue notes and guarantee their payment it can cer- 
tainly just as well issue such notes itself. And if 
the government can issue notes upon the security of 
gold, which is devoted to the payment of debts, it 
can certainly far more safely issue notes upon the se- 
curity of other forms of wealth which is not to be 
expended by the government in the payment of debts. 
Accordingly, if the government will issue its 
notes at fill times upon all forms of wealth that will 



80 MAN'S MISTAKE. 

afford satisfactory security, when the same is offered 
to the government for that purpose, the circulating 
medium can be increased in volume almost indefinitely, 
and every dollar will be absolutely secured by actual 
wealth. Surely, there is no way imaginable by which 
a safer and greater volume of the currency can be 
floated, and these are the two vital objects to be ob- 
tained. Every citizen who owns any form of wealth 
that is capable of affording appropriate security 
can go to the government and borrow money upon the 
same — the government giving him its notes, and he 
pledging his wealth to the government as security un- 
til such notes are returned to the government. Such 
notes should constitute the only kind of currency. 
They would in most instances, of course, have to be 
issued for short intervals of time, and when returned 
they would be re-issued, just as is now done with our 
paper money. 

The rate of interest would, of course, tend to 
reach the very lowest possible point under this 
plan; for the greatest possible volume of money can 
be circulated. But the government should charge the 
very highest average rate of interest paid on capital 
or general wealth ; since if it did otherwise the very 
rich would obtain an enormous advantage over those 
who could borrow only small amounts. If interest on 
such government loans were to be lower than interest 
on capital or general wealth, then those possessing 
great fortunes would certainly derive proportionally 
greater benefits than those who own less; while those 
possessing little or no wealth at all could borrow lit- 
tle or nothing and receive little or no benefit, but 
would be injured indirectly — injured by the advan- 
tage given to the rich. The rate must be kept as high 
as the rate on capital or great injustice is sure to be 
done. What is required is to bring interest on money 



MAN'S MISTAKE. >1 

down to the very lowest level with interest on capital; 
and this method of circulating" money is certain to do 
that if anything can do so. But for the government 
to loan money at a lower rate of interest than what 
is charged for the use of capital would be a crime 
against the verjr class that deserves to be favored if 
favors are proper at all. 

There can never be a contraction of the currency 
under this system if the rate of interest on money is 
made equal at all times to the prevailing rate on cap- 
ital; since the slightest scarcity of money would tend 
to make the interest on money higher than that on 
capital — that is, it would cause money to be in greater 
demand — and there would immediately be an in- 
crease of borrowers, which would bring the demand 
for money down to a level with the demand for capital. 
And this level is the mark which would limit the vol- 
ume of circulation, for any increase of the currency 
above this mark could be of no advantage to society. 
Society needs only enough money to effect the ex- 
changes of the markets; and this amount is certain to 
be kept in circulation if the rate of interest on money 
is maintained at the level of interest on capital. 

This affords a natural and appropriate limit for the 
volume of the currency, without the intervention of 
any act of Congress or any regulation whatever — the 
volume of the circulating medium will regulate itself, 
and will do so in the most perfect manner. Contrac- 
tion will be impossible, and inflation could do no harm 
if it were possible; for, no matter how much money is 
put in circulation, if every dollar is backed by security 
pledged to the government it cannot depreciate or 
create any disturbance in trade. 

The kinds and amounts of capital or wealth upon 
which loans can safely be made must of course be as- 
certained by law; and experience will soon indicate 



82 MAN'S MISTAKE. 

what is best in this respect. The same is true respect- 
ing the treatment of those who may violate the laws 
regulating - government loans. Retribution for dispo- 
sing of wealth pledged as security, for instance, must 
necessarily be rather severe, just as in case of counter- 
feiting. But there are certainly no serious obstacles 
in the way of successfully guarding against any possi- 
ble* emergencies. 

Besides the evil of a fluctuating standard, our 
present money system is, and always must be, de- 
ficient in the volume of the circulation; and this would 
be thoroughly remedied by this plan. Instead of a 
circulation of $2,000,000,000 we probably could have 
over $20,000,000,000. And such a medium could never 
be cornered by the money- interests as can be and is 
done with our present currency. Such a currency 
could not be materially contracted; for the moment a 
contraction were felt there would be an increase of bor- 
rowers, which would promptly increase the circula- 
tion to the required limit. But if it could be cornered 
no advantages could accrue to those engaged in such 
an attempt, for the same could not in any way affect 
the standard or unit of value, and borrowers could 
still get money of the government at the normal rate, 
above which private enterprise could not possibly 
loan any money. 

The question as to the manner in which the gov- 
ernment should issue its notes now presents itself. It 
may seem objectionable, too, that the government 
should engage in the money loaning business — even 
for the purpose of providing a suitable currency. 

However, the financial interests are purely public 
interests — as much so as are the postal and railway 
interests — and if this system of money is the proper 
one it is indispensible that the government should be- 
come a money loaning institution, since this is the 



MAN'S MISTAKE. 83 

only practicable method of securing a circulation for 
such a currency. 

To do this the government should connect with 
every postoftice a purely national bank of money issue 
and deposit, abolishing all national features of other 
banks, which should be left to do all banking busi- 
ness as strictly private corporations. This would con- 
venience the entire public and make deposits absolute- 
ly safe — something that is in itself to be very much 
desired. Furthermore, the interest charged on notes 
issued by the government would doubtless more than 
pay all the expenses of the government in operating 
such a system of banks and money. The whole insti- 
tution would be self-supporting. 

In times of peace such money must evidently be 
absolutely safe, as well as flexible and self-regulating; 
because the government credit is supported by actual 
wealth pledged to it for every dollar issued. In times 
of war it must for the same reason be the safest cur- 
rency conceivable; for hiding and hoarding it — as is 
always done upon such occasions with the precious 
metals — can afford no possible advantages, since it 
possesses no intrinsic value. It would circulate as 
freely in war as in peace. 



CONCLUSION. 



Important as are the money and railway ques- 
tions, neither can afford a real or wholesome remedy. 
The remed}^ lies in the land question — in the question 
whether all men or only a few shall own the gifts of 
nature; whether rent shall go to landlords, or to the 
public, which creates it. Whatever else may be in 
order and essential, this is certainly the first and most 
fundamental economic arrangement that must be prop- 
erly provided for. No matter what financial and rail- 
way systems may be established, so long" as the earth 
is monopolized must labor find it difficult to secure 
employment and impossible to obtain fair wages; and 
this is just what must be accomplished. The problem 
is to open the fields of industr}^ — to permit labor to 
use the world, which must immediately raise wages to 
the highest consistent point and cause an equitable 
distribution of the results of industry, no matter what 
money is used or how the railways are operated. 

Already over 20,000,000 acres of very valuable 
American lands are owned by landlords of Great Brit- 
ain alone; and their 'free' American tenants are com- 
pelled to pay them millions of dollars annually for the 
privilege of using and living in their own 'dear 
native land.' Millions of dollars every year we must 



MAN'S MISTAKE. 85 

pay to foreign landlords for the blessed privilege of 
earning a living. How stupid we 'free' Americans 
are! to pay foreigners, who do nothing to produce our 
wealth, such enormous bounties — we might as well 
cast our millions into the sea; and the sea is just as 
much entitled to the same. 

Under our present land system and laws all our 
lands might be owned by foreigners, who, without ever 
touching the wheels of industry, would drain this 
beautiful land, the veriest paradise of the globe, of 
the bulk of all wealth that we might be permitted 
by such landlords to produce. We 'free' Americans 
would evidently be nothing more than their humble 
slaves. 

But what would be the difference if these laud- 
lords were to live in London or in New York, on this 
side or on the other side of the ocean? Practically 
nothing. Landlords can be no more instrumental in 
producing wealth or creating rent by living in idleness 
here than they can be by living in idleness across the 
sea; and hence, they are in neither case entitled to one 
cent of such wealth or rent. The only thing that can 
be said in favor of resident landlords is that they will 
spend their money here — as though that were a suffi- 
cient reason why landlords should get what others 
produce. But what advantage is there in having land- 
lords spend their money here? Only this: that we will 
have the pleasure of feeding them, Money is spent or 
invested where it affords the greatest opportunities; 
and it matters not where men who possess it live. The 
money obtained from us by landlords will be invested 
wherever it may find the greatest demand or secure 
the highest returns — and it takes but a few days to 
ship money across the Atlantic, and but a few hours 
or minutes to effect an investment in the most distant 
portions of the globe. T- does not mean that because 



86 man's mistake. 

money is paid here it remains here. But whether it 
does or not, industry is not only robbed of so much of 
its results, but is demoralized by the obstructions thus 
thrown in its course. Money flows and seeks its level, 
just like water. We could not stop it if we would. 

No, it differs not whether landlords live abroad or 
in our midst; whether they are foreigners or Ameri- 
cans; whether they constitute a million individuals or 
only one person. Industry must pay the rent and suffer 
just the same. 

And, ah! how terrible to contemplate that we toil- 
ing" Americans must pay annually billions of dollars 
for the privilege of toiling, and to enable our land- 
lords to spend our money for us in our own country! 
But even all this could be endured if it did not reduce 
and degrade labor, the noblest attribute of man, into 
misery and disgrace — nay, if it did not produce invol- 
untary destitution, want, crime, and death ! 

Who can view these conditions, which all must 
see if they would or not, and then deny the possibility 
of some terrible injustice: He who cannot see that 
a great wrong exists must be blinder than a bat; he 
who has no faith in the application of any just remedy 
must, in his heart, be« a blasphemer of the Creator; 
and he who will shrink from enlisting his attention in 
the search for such a remedy must be an intellectual 
and moral coward. 

We talk about Christianizing the world; but we 
cannot succeed until we begin at the proper place. If 
we would transport goods across the sea, we must first 
build a ship; and if we would climb to heaven we must 
first construct a ladder. If we would make men good 
we must first enable them to be good. Instead of deny- 
ing them the use of the earth and thereby forcing them 
into idleness, destitution and crime, we must open up 
the fields of labor, from which they are barred by the 



man's mistake. 87 

monopoly created by our laws, and by which they are 
robbed when access to opportunities is granted them. 
We must enable all men to make an honest living", and 
fewer will engage in the occupations of swindling, 
stealing and gambling. We must abolish the laws that 
tempt and drive men into evil ways, before we can 
hope to see them honest and true. Let us establish 
a just economic system, so that no one will be forced 
into want, but can at all times make at least a com- 
fortable living, and the Christianization of man will 
be easy and rapid. 

The true teacher of religion and ethics must lay 
his foundation and begin to build here; for the laws 
that govern society are of greater consequence than 
the theories of creeds. If the clergy of the world 
would devote a tithe of their energies in this direction 
they would do far more good for the religion of Jesus 
than they do in teaching and preaching theories alone. 
This is Christianity; it is practical Christianity — the 
only Christianity that counts for much. 

It is not only the duty of the churches to protest 
against the terrible crime of private appropriation of 
rent, but they commit no less a crime when they 
countenance and fail to protest against the same. To 
countenance wrong is no better than doing wrong, and 
there can be no alternative for the churches, if they 
are to serve the purpose of moral institutions. 

Monopoly is the chief cause of crime, the principal 
obstruction to progress, and the awful curse of this 
otherwise magnificent world. It makes millionaires of 
idlers, and tramps of industrious toilers. It checks 
prosperity, and produces panics and hard-times. It 
debases human intellect and human character, and 
perverts human nature. It is the great fountain-head 
of nearly all that is low, vulgar and mean. We pray, 
and have prayed for centuries, 'Thy kingdom come on 



88 man's mistake. 

earth as it is in heaven.' Is this the kingdom of our 
prayer? a world of beggars and tramps? If it is, it is 
a veritable hell indeed, and it behooves us to pray 
for a better kingdom, or with greater faith, and to act 
as well as pray. But how often do we hear people say 
this prayer, and in the very next breath, if they are 
approached upon the subject, say this state of things 
cannot be avoided. In church they profess to believe 
that their praj^ers will be answered ; but in their hearts 
they have no faith. Let us have faith. 

The struggle for this reform is not only begun, but 
is already far on the way. Thinking people the world 
over are giving it their serious attention; and the 
ablest of statesmen are championing the great cause. 
Enlisted in the movement are people of all classes, 
from orthodox to infidel, from millionaire to beggar, 
from monopolist to wage-earner, and even from land- 
lord to tenant. This is no class movement. It is the 
movement of mankind for a truer and higher order of 
social justice. It is the movement of equal rights to 
all and a brotherhood of man. 



BY HENRY GEORGE. 

A PERPLEXED PHILOSOPHER. $.50 

Mr. George has exposed Mr. Spencers weakness in a manner which read- 
ers immediately necessary the most frank and full defence that can he 
made.— Congregationalism Boston. Mass. 

"A Perplexed Peilosopher" will take high rank amongst those master- 
pieces on economics which Mr. George has issued. It is virtually an able de- 
fence of the single tax doctrine, which is making steady headway, and is 
rapidly approaching the-moment when it will enter into national politics.— 
Arena. 

It is one of the most important books of the season. —Review of Reviews. 

Mr. George shows himself to be an honorable critic and a foeman worthy 
of the philosopher's steel. The reader will find in this volume every word 
which Mr. Spencer has published on the land question from 1850 to 189-2.— New 
York Tribune. 
PROTECTION OR FREE TRADE. $.50 

Mr George has written as an economist and a reformer: yea. more than 
that, as a patriot and a Christian. AVe heartily commend his book to all who 
wish to see an intelligent discussion of a live and popular question.— Church 
Press. New York. 

One of the strongest arguments ever preseuted against the iniquity of the 
tariff. It is as interesting as any novel.— New York World. 

All anxious for a full discussion of the most important public question of 
the day should use their best efforts to promote the circulation of this book, 
a real classic in political economy.— Indianapolis Sentinel. 

SOCIAL PROBLEMS. $.50 

••To those who read only for diversion we may say. that there is not a dull 
page in this book, nor is there a paragraph but will compel attention."— 
New York Sun. 
THE CONDITION OF LABOR. *.30 

One of the finest bits of English ever written.— London Star. 

By far the most important contribution yet made to the literature called 
out by the Encyclical.— New York Herald. 

The most f oricible as it is the most concise statement of the single tax 
idea that has yet appeared.— Denver News. 

Not only the most lucid, compact and satisfactory exposition of the single 
tax doctrine that has appeared, but the keenest critique on the several 
theories of contemporaneous socialism.— Gospel Messenger. 

THE LAND QUESTION. $.20 

One rises from a reading of this work with a conviction of the justice of 
the theory advocated, and with admiration for the clearness with which it is 
stated.- -N. Y. Times. 

The clearest and truest exposition of the merits of this much-vexed ques- 
tion.- Phila. Press. 

It is a gem of logic, beautiful in composition and profound in thought. 
Victor Hugo never penned an ything grander.— Sacramento Bee. 

PROPERTY IN LAND. $.20 

A passage at arms between the Duke of Argyll and Henry George. Paper. 
•20 cents. Contents: I. -The Prophet of San "Francisco."' " Bv the Duke of 
Argyll. From the, Nineteenth Century for April. 1884. II. -The Reduction to 
Iniquity." By Henry George. From the Nineteenth Century for July, 1884. 



Any of the above sent postpaid on receipt of price. Address 
AMFRICAN EDUCATIONAL PUB. CO., Third and Market Sts., St. Louis. 



PROGRESS AND POVERTY, by henry georqe. 

AN INQUIRY INTO THE CAUSE OF IN- 
DUSTRIAL DEPRESSIONS, AND OF IN- 
CREASE OF WANT WITH INCREASE 
OF WEALTH; THE REHEDY. 520 pages. 

Cloth $1.00, Rarer $.50 

' 'Progress and Poverty" is not merely the most or- 
iginal, the most striking and important contribution 
which political economy has yet received from Amer- 
ica, but it is not too much to say that in these re- 
spects it has had no equal since the publication of 
"The Wealth of Nations,'' by Adam Smith, a century 
ago, or, at least, since Malthus formulated his theory 
of population and Ricardo his theory of rent. A 
more aggressive, not to say audacious, book was 
never written." — New York Herahl. 

One of the most important contributions yet made 
to economic literature. It is full of vital thought, is 
written with earnestness and power, and is a w T ork 
hard to lay down when once beg'un. — Popular Science 
Month! 11. 

PRINCIPLES OF PROCEDURE IN DELIB- 
ERATIVE BODIES. 

The Best Parlimentary Manual Ever Published. 

BY 

GEORGE CLOVER CROCKER, 

PRESIDENT MASSACHUSETTS SENATE IN 1883. 

Second Edition Revised and Enlarged. 

I.— This manual furnishes a systematic statement of procedure common to 
all Deliberative Bodies. 

II.— The statement is concise and easily understood. 

III.— The manual demonstrates that procedure in deliberative bodies is 
not arbitrary, but it is founded upon reason. 

IV.— The reasons for each position are given, so that memory of arbitrary 
rules becomes unnecessary. 

V.— Many points are covered which are not found in other manuals. 

VI.— It is a book of ready reference. 

VII.— It is the onlv manual which cites decisions of the Uuited States' and 
State Courts. 

VIII.— For the special benefit of beginners there is an outline sketch of the 
proceedings at an ordinary meeting. 

IX.— At the very end ot'the book is a consolidated statement, shown on a 
single page, easy of reference and of great value. 

X.— This manual was the first to lay down the principle that if a quorum 
is present a vote is valid though less than a quorum votes. At the time when 
Speaker Reed made his well-known ruling this manual was the only one 
which could be cited in his support, 'i he principle has since been endorsed 
by the U. S. Supreme Court. 

16 mo, cloth extra, .75 

Either of the above sent postpaid on receipt of price. Address 
AMERICAN EDUCATIONAL PUB. CO., Third and Harket Sts., St. Louis. 



THE INDUSTRIAL AND COMMERCIAL HISTORY 
OP ENGLAND. By James E. Thorhold, Rogers, 
M. A. 8vo. 13.00 

THE ECONOMIC INTERPRETATION OF HIS- 
TORY. Being the Substance of Lectures Delivered 
in Worcester Hall, Oxford University (1887-8). By 
James E. Thorhold Rogers, M. A. 8vo. Cloth, $3.00 

SOCIAL ECONOMY. Revised and Edited for 
American Students. By James E. Thorhold 
Rogers, M. A. 16mo. Cloth, • .75 

THE TARIFF HISTORY OF THE UNITED 
STATES. By F. W. Taussig. Octavo, cloth, $1.25 

AMERICAN PRISONS IN THE TENTH UNITED 
STATES CENSUS. Frederick Howard Wines. 
Octavo, paper. .25 

RAILWAY SECRECY AND TRUSTS. Its Relation 
to Interstate Legislation. By John M. Bon ham. 
Octavo. $1.00 

WHO PAYS YOUR TAXES? A Consideration of 
the Question of Taxation. By David A. Wells, 
Julien T. Davis, Thomas G. Shearman, Joseph 
Dana Miller, Bolton Hall, and others. Edited by 
Bolton Hall; and issued on behalf of the New York 
Tax-Reform Association. With frontispiece. $1.25 

OUR MERCHANT MARINE, How it rose, increased, 
and decayed; with an inquiry into the conditions es- 
sential to its resuscitation and prosperity. By 
David A. Wells. Octavo, cloth $1.00 

THE PROGRESS OF THE WORKING CLASSES 
IN THE LAST HALF CENTURY. By Robt. 
Giffen. Octavo, paper .25 

THE WRITINGS AND CORRESPONDENCE OF 
THOMAS JEFFERSON. Edited by Paul Leicester 
Ford. Uniform with the sets of the "Writings of 
Hamilton," "Franklin," "Washington," and "Jay." 
In course of publication. To be completed in ten 
volumes, 8vo } half leather, gilt tops. Price per 
volume to subscribers. $5.00 

Limited edition, 750 copies, printed from type. 
Vols. I. -IV. now ready; volume V. ready shortly. 

Any of the above sent postpaid on receipt of price. Address 
AMERICAN EDUCATIONAL PUB. CO., Third and Market Sts., St. Louis. 



MONEY AND THE MECHANISM OF EXCHANGE. 
By W. Stanley Jevons, Professor of Logic and Polit- 
ical Economy in Owens College, Manchester. (Inter- 
national Scientific Series). 12mo. Cloth, $1.75. 

FINANCIAL HISTORY OF THE UNITED STATES, 
from 1774 to 1789. By Albert S. Bolles. 8vo. Cloth, 

$2.50 

FINANCIAL HISTORY OF THE UNITED STATES, 
from 1789 to 1860. By Albert S. Bolles. 8vo. Cloth, 

$3.50 

FINANCIAL HISTORY OF THE UNITED STATES, 
from 1861 to 1885. By Albert S. Bolles. 8vo. Cloth, 

$3.50 

THE HISTORY OF BIMETALLISM IN THE UNITED 
STATES. By J. Lanrence Laughlin, Ph. D. With 
16 Charts and numerous Tables. 8vo, 258 pages. 
Cloth. $2.25 

PAPER-MONEY INFLATION IN FRANCE : How it 
Came, What it Brought, and How it Ended. By 
Andrew D. White, President of Cornell University. 
8vo. Paper. .50 

PAPER MONEY: A Collection of the Principal His- 
torical Facts bearing upon the Current Financial 
Discussion. By H. W. Richardson. 12mo. Paper, .15 

PRINCIPLES OF POLITICAL ECONOMY. WITH 
SOME OF THEIR APPLICATIONS TO SOCIAL 
PHILOSOPHY. By John Stuart Mill. 2 vols. 8vo. 
Cloth, $1.00; half calf, extra. $8.00 

ELEMENTS OF ECONOMICS. By Henry Dunning 
Macleod, M. A., of Trinty College, Cambridge, and 
the Inner Temple, barrister-at-law selected by the 
Royal Commissioners for the Digest ol the Law to 
prepare the Digest of the Law of Bills of Exchange, 
Bank Notes, etc. Lecturer on Political Economy in 
the University of Cambridge. In 2 vols., 12mo. 
Cloth, each $1.75 

THE HISTORY OF THE CONFLICT BETWEEN 
RELIGION AND SCIENCE. By J. W. Draper, M. 
D.. LL. D. $1.75 

SIX CENTURIES OF WORK AND WAGES. The 
History of English Labor (1250-1883). By James E. 
Thorhold, Rogers, M. A. 8vo. $3.00 

Any of the above sent postpaid on receipt of price. Address 
AflERICAN EDUCATIONAL PUB. CO., Third and Market Sts., St. Louis. 



THE WRITINGS OF THOMAS PAINE. Political, 
Sociological, Religious, and Literary. Edited by 
Moncure Daniel Conway, with introduction and 
notes. To be complete in four volumes, uniform 
with Mr. Conway's "Life of Paine.'' Price per vol- 
ume, cloth. |2 50 
Vols. I. and II. are now ready, and vol. III. will be 
published in February. 

THE EGYPTIAN BOOK OF THE DEAD. The most 
ancient and the most important of the extant re- 
ligious texts of ancient Egypt. Edited with intro- 
duction, a complete transalation, and various chap- 
ters on its history, symbolism, etc., etc., by Charles 
H. S. Davis, M.D., Ph.D. With 99 full-page illustra- 
tions from the Turin and the Louvre Papyri, and 25 
designs representing the Egyptian Gods. Large 
quarto, cloth, extra. |6.00 

THE MEANING AND THE METHOD OF LIFE. A 
Search for Religion in Biology. By George M 
Gould, A.M. M.D. 1893, 297 pages. Price. $1 75 

THE CONSTITUTIONAL HISTORY OF THE 
UNITED STATES as seen in the development of 
the American Law. Comprising a Course of Lec- 
tures Delivered before the Political Science Associ- 
ation of the Uuiversity of Michigan, with an intro- 
duction by Prof. Henry Wade Rogers, Dean of the 
Law School of the University of Michigan. 8vo. 
cloth, extra. $2.00 



THE ACME ELEMENTARY 

READING CHARTS. 

ARE ENTIRELY NEW AND PRINTED FROM BEAUTIFUL 
NEW METAL TYPE MADE ESPECIALLY FOR 
THESE CHARTS. ILLUSTRATED 
THROUGHOUT WITH DRAW- 
ING EXERCISES. 

PriceOnly $1.25 a Set. 

Any of the above sent postpaid on receipt of price. Address 
AMERICAN- EDUCATIONAL PUB. CO., Third and riarket Sts., St. Louis. 



S'?2x E COURIER. 

W. E. BROKAW, Editor. 

The SINGLE=TAX COURIER is a six= 
teen=page illustrated weekly reflecting the 
single=tax news of the world. It has cor= 
respondents in all parts of the United States 
and Canada and in many foreign countries. 
No one who wishes to keep informed as to 
the progress of the movement can afford to 
be without the SINGLE=TAX COURIER. 

HENRY GEORGE HAS RECENTLY WRITTEN: 



"I appreciate the great improvement that has been made in the SINGLE= 
TAX COURIER and the usefulness of the field it is filling in bringing together 
the news of the Single=Tax movement. It is doing this so well that there is 
no longer any reason to regret the suspension of the STANDARD. " 

PUBLISHED BY 



The Courier Publishing Co., 

507 Fagin Building, ST. LOUIS. 
JOHN F. FORD, Business Manager. 



THE 

Warfare of Science 

BY 

ANDREW DICKSON WHITE, LL. D., 

President of Cornell University. 



PREFACE. 

In its earlier abridged form this address was given 
as a Phi Beta Kappa oration at Brown University, 
and, as a lecture, at New York, Boston, New Haven, 
Ann Arbor, and elsewhere. In that form, substan- 
tially, it was published in The Popular Science 
Monthly. I have now given it careful revision, cor- 
recting some errors, and extending it largely by pre- 
senting new facts and developing various points of 
interest in the general discussion. Among the sub- 
jects added or rewrought are, in Astronomy, the 
struggle of Galileo and the retreat of the Church after 
its victory; in Chemistry and Physics, the compromise 
between Science and Theology made by Thomas 
Aquinas, and the unfortunate route taken by Science 
in consequence; in Anatomy and Medicine, the earlier 
growth of ecclesiastical distrust of these sciences; in 
Scientific Education, the dealings of various European 
universities with scientific studies; in Political and 
Social Science, a more complete statement of the 
opposition of the Church, on Scriptural grounds, to 
the taking of interest for money; and in the conclusion, 
a more careful summing up. If I have seemed to en- 
cumber the text with notes, it has been in the intention 
to leave no important assertion unsupported; and in 
the hope that others — less engrossed with administra- 
tive care than myself — may find in them indications 
for more extended studies in various parts of the 
struggles which I have but sketched. $1.00 

The above sent postpaid on receipt of price. Address 
AMERICAN EDUCATIONAL PUB. CO., Third and flarket Sts., St. Louis. 



THE 

HOST 

DURABLE, 

CONVENIENT, 

COMFORTABLE, 

ONLY NOISELESS, 

ADJUSTABLE, AND 

PERFECT 

SCHOOL DESK. 

The best 

Desk made. 
Piices low, 



The 

Perfect 

School Desk. 

In all respects this 

Desk is not only fully 

equal, but superior to 

all others; and in four 

very essential respetcs 

it is 

the 

only 

desk 

that 

truly 

[possesses the same. These 
'four are: ADJUSTABILITY, 
l Durability, Quietness, and 
Convenience in sweep- 
ing, which make this 
>what it has been ap- 
propriately named, 



The Perfect Desk. 

This Desk is made in three sizes, but each 
size can be adjusted to accommodate all ages 

— the only moderate-priced desk of the kind ever made, 
and the only one that perfectly combines simplicity, 
strength and convenience in sweeping - . 

It is absolutely durable, being so constructed that 
it can positively never become delapidated. 

It saves from $15 to $20 a year in janitor work for 
each room, being mounted on one firm pedestal. 

It is the only entirely noiseless desk, having not a 
movable part in it — an exceedingly essential merit. 

It is very comfortable, attractive and perfect. 

American Educational Pub. Co., St.lows. 



LIBRARY OF CONGRESS 





